What pre-opening obligations must Bft franchisees in Washington receive before the surety bond requirement can be lifted?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
e. Carefully evaluate any information provided by a franchise broker about a franchise. Do your own investigation by contacting the franchisor's current and former franchisees to ask them about their experience with the franchisor.
- The following is added to the end of Item 5 and Item 7:
A surety bond in the amount of $100,00 has been obtained by the Franchisor. The Washington Securities Division has made the issuance of the franchisor's permit contingent upon the Franchisor maintaining surety bond cove
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 Washington Securities Division requires Bft to maintain a $100,000 surety bond until certain conditions are met. This bond ensures that Bft fulfills its obligations to franchisees in Washington. The surety bond coverage must be maintained until all Washington franchisees have received all initial training that they are entitled to under the franchise agreement or offering circular and are open for business. Alternatively, the Administrator (likely referring to a regulatory body) can issue written authorization to discontinue the bond.
For a prospective Bft franchisee in Washington, this means that Bft must provide all required initial training as outlined in the franchise agreement and offering circular before the franchisee opens their business. This training is a critical pre-opening obligation. The surety bond is in place to protect franchisees in case Bft fails to meet these obligations.
This condition is significant because it ensures that Bft is committed to adequately preparing its franchisees before they begin operations. It also provides a safety net for franchisees, as the surety bond can be used to cover losses if Bft does not fulfill its pre-opening responsibilities. Franchisees should confirm they receive all entitled pre-opening obligations and training.