When is the Bft Non-Compliance Fee payable?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Non-Compliance Fee | $100 for each day of non-compliance | Upon demand | Payable only in the event you fail to comply with your material obligations under your Franchise Agreement. The Non-Compliance Fee will be incurred during each day of non-compliance. |
Source: Item 6 — OTHER FEES (FDD pages 21–26)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the Non-Compliance Fee is payable "upon demand." This fee, set at $100 for each day of non-compliance, is incurred if a franchisee fails to comply with their material obligations under the Franchise Agreement. The fee continues to accrue for each day the franchisee remains non-compliant.
In practical terms, this means that if Bft determines a franchisee is not meeting the requirements outlined in the Franchise Agreement, Bft can demand immediate payment of $100 for each day the franchisee has been in violation. This could quickly become a substantial amount if the non-compliance persists over an extended period.
Prospective franchisees should carefully review the Franchise Agreement to understand what constitutes a 'material obligation' to avoid incurring this fee. It is also important to promptly address any issues of non-compliance to minimize the financial impact. Franchisees should also be aware that the Non-Compliance Fee is separate from, and in addition to, any other remedies Bft may have for breach of the Franchise Agreement.