Regarding Bft franchise transfers, what is the look-back period for misdemeanor convictions that could disqualify a transferring party?

According to the 2025 Bft Franchise Disclosure Document, a transferring party may be disqualified if they have been convicted of or pleaded nolo contendere to a misdemeanor charge within the 10-year period immediately preceding the application for registration. The misdemeanor charge must be related to violation of a franchise, antitrust, or securities law; fraud; embezzlement; fraudulent conversion; misappropriation of property; or unfair or deceptive practices; or comparable allegations.

This means that Bft considers the recent legal history of potential franchisees or transferring parties to ensure they have not engaged in activities that could pose a risk to the franchise system. A conviction or plea related to the specified offenses within the past decade could prevent someone from becoming a Bft franchisee or from transferring their franchise to another party.

This requirement is in place to protect the integrity of the Bft brand and the interests of other franchisees within the system. By setting a 10-year look-back period, Bft aims to balance the need to avoid potential risks with the possibility of allowing individuals who have demonstrated rehabilitation to participate in the franchise system. This is a fairly standard practice in franchising, as franchisors typically want to avoid associating with individuals who have a history of financial impropriety or legal issues that could harm the brand's reputation.