What regulatory investigation did Bft receive notice of on April 10, 2023?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Other Regulatory Matters – On April 10, 2023, the Company, the Member and the Member's Parent (collectively the "Defendants") received notice of an investigation from the Commissioner of California's Department of Financial Protection and Innovation ("DFPI") related to the Defendants' compliance with California's Franchise Investment Law. On November 4, 2024, without admission of wrongdoing the Defendants entered into a Consent Order with the DFPI to resolve the matter.
In addition, the Company has received inquiries from other states, including the Office of the Attorney General of the State of New York, the Office of the Attorney General of the State of Maryland, the Washington Department of Financial Institutions, and the Minnesota Department of Commerce regarding the Company's compliance with applicable franchise laws.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, on April 10, 2023, Bft, its Member, and the Member's Parent received notice of an investigation from the Commissioner of California's Department of Financial Protection and Innovation (DFPI). The investigation was related to the Defendants' compliance with California's Franchise Investment Law.
On November 4, 2024, Bft and the other defendants entered into a Consent Order with the DFPI to resolve the matter without admitting any wrongdoing. This resolution indicates that Bft addressed the concerns raised by the DFPI, but it's important for potential franchisees to understand the nature of the initial investigation and the terms of the Consent Order.
In addition to the California investigation, Bft has received inquiries from other states, including New York, Maryland, Washington, and Minnesota, regarding its compliance with applicable franchise laws. These inquiries suggest a broader scrutiny of Bft's franchise practices across multiple jurisdictions. Prospective franchisees should investigate the nature of these inquiries and their potential impact on Bft's operations and franchise agreements.