For Bft, what are the possible forms of ownership the Developer can have?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
If Developer is not a natural person (a "Business Entity"), Developer agrees, represents and warrants to Franchisor that: (1) it was validly formed and will maintain, throughout the Term (defined in Section 2.A below), its existence and good standing under the laws of the state of its formation and qualified to do business in the jurisdictions covered by the Development Area; (2) Exhibit A to this Agreement describes all of Developer's owners and their interests in Developer as of the Effective Date; (3) each of Developer's owners that has at least 10% direct or indirect ownership interest in Developer, and their spouse, will sign and deliver to Franchisor its then-standard form of Guarantee, Indemnification, and Acknowledgment (the "Guaranty"), the current form of which is attached as Exhibit B hereto; (4) the only business Developer will own or operate during the Term will be the exercise of the rights granted to it under this Agreement and any other agreement between it and Franchisor or its successors and assigns; and (5) at
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the Developer can be a natural person or a business entity. If the Developer is a business entity, it must be validly formed and maintain its existence and good standing under the laws of the state of its formation.
If the Developer is a business entity, Exhibit A to the Multi-Unit Agreement must describe all of the Developer's owners and their interests in the Developer as of the effective date. Each owner with at least a 10% direct or indirect ownership interest, along with their spouse, must sign and deliver a Guaranty to Bft.
Furthermore, if the Developer is a business entity, it can only own or operate the rights granted under the Multi-Unit Agreement and any other agreement with Bft. This ensures that the Developer's primary focus is on developing and operating Bft franchises within the designated Development Area.