What is the relationship between the Bft Sourcing Fee Addendum and the Multi-Unit Agreement?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
tes between the Guarantors and Franchisor. The Guarantors shall reimburse Franchisor for all costs and expenses it incurs in connection with enforcing the terms of this Guarantee.
IN WITNESS WHEREOF, each of the undersigned has signed this Guarantee as of the Effective Date.
| GUARANTOR(S) | SPOUSE(S) |
|---|---|
| Name: | Name: |
| Sign: | Sign: |
| Address: | Address: |
| Email Address: | Email Address: |
| Name: | Name: |
| Sign: | Sign: |
| Address: | Address: |
| Email Address: | Email Address: |
EXHIBIT L-1
FRANCHISE AGREEMENT SOURCING FEE ADDENDUM
EXHIBIT L-1 FRANCHISE AGREEMENT SOURCING FEE ADDENDUM (BFT)
| THIS SOURCING FEE ADDENDUM | (this "Sourcing Fee Addendum") is made and entered into by |
|---|---|
| and between | BFT FRANCHISE SPV, LLC, a Delaware limited liability company with its principal business |
| address at 17877 Von Karman Ave., | Suite 100 Irvine, CA 92614 ("Franchisor"), and |
| , whose principal business address is | |
| ("Franchisee"). | |
| 1. , 20 Sourcing Fee Addendum. This Sourcing Fee the Franchise Agreement. Terms not otherwise defined in this Sourcing Fee defined in the Franchise Agreement. This Sourcing Fee Agreement. | Background. Franchisor and Franchisee are parties to that certain Franchise Agreement dated (the "Franchise Agreement") that has been signed concurrently with the signing of this Addendum supersedes any inconsistent or conflicting provisions of Addendum have the meanings as Addendum is annexed to and forms part of the Franchise |
| 2. Agreement). effective as of the Effective Date of the Franchise Agreement. | Sourcing Fee. Franchisee (and/or its affiliate(s)) currently operates an existing BFT Studio, and in connection with the grant of the Franchise under the Franchise Agreement, a commission is owed to a third party franchise broker based on a previously-made introduction to Franchisor or its affiliates. |
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 Sourcing Fee Addendum is related to the Multi-Unit Agreement. Specifically, Exhibit L-2 is the 'Form of Sourcing Fee Addendum (Multi-Unit Agreement)'.
The Sourcing Fee Addendum is made and entered into by and between BFT Franchise SPV, LLC and the Franchisee. The Sourcing Fee Addendum is effective as of the Effective Date of the Multi-Unit Agreement. The document states that the parties execute and deliver the Sourcing Fee Addendum to be effective as of the Effective Date of the Multi-Unit Agreement.
Furthermore, the document indicates that the Sourcing Fee Addendum is used when a commission is owed to a third-party franchise broker based on a previously-made introduction to Franchisor or its affiliates. In this case, the franchisee agrees to pay a non-refundable sourcing fee in the amount of $28,000 upon execution of the Franchise Agreement, which is in addition to the initial franchise fee.