Are Bft's renewal options for franchise agreements considered material?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.2 Successor Franchise. Subject to this Section, Franchisee will be eligible to acquire one (1) separate and consecutive successor franchise for an additional ten (10) year term (a "Successor Franchise").
To acquire the Successor Franchise:
- A.
Prior to expiration of the Term, Franchisee shall execute Franchisor's then-current form of franchise agreement for BFT Studios, modified as necessary to reflect that the franchise granted therein is a Successor Franchise (the "Successor Franchise Agreement").
The provisions of the Successor Franchise Agreement may differ from and shall supersede this Agreement in all respects, including changes in royalty and advertising fees, except that Franchisee shall pay the Successor Franchise Fee (as defined in Section 3.2.F below) instead of the Initial Franchise Fee (as defined in Section 5.1 below).
Franchisee's failure or refusal to execute and return the Successor Franchise Agreement and Successor Franchise Fee to Franchisor within thirty (30) days after delivery of the Successor Franchise Agreement to Franchisee shall constitute Franchisee's election not to acquire the Successor Franchise;
- B.
Franchisee shall demonstrate that it has the right to remain in possession of the Authorized Location for the duration of the term of the Successor Franchise, or that it has been able to secure and develop an alternative site acceptable to Franchisor;
- C.
In consideration of the grant of the Successor Franchise, Franchisee shall execute a general release in the form and substance satisfactory to Franchisor, releasing any and all claims Franchisee and its related parties may have against Franchisor and its affiliates, and their respective owners, officers, directors, employees, agents, successors and assigns;
- D.
Franchisee shall have completed, at Franchisee's expense, such renovation and modernization of its Studio, including the interior and exterior of the building, grounds, leasehold improvements, signs, furnishings, fixtures, equipment, surveillance cameras, and decor as Franchisor reasonably requires so the Studio conforms with the then-current System Standards;
- E.
During the Term, Franchisee shall have substantially complied with all of the provisions of this Agreement and all other agreements with Franchisor and vendors to the Studio, and Franchisee and
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees have the option to acquire a successor franchise agreement for an additional ten-year term. To obtain this successor franchise, franchisees must meet several conditions.
First, franchisees must execute Bft's then-current franchise agreement, modified to reflect its status as a successor franchise agreement, before the expiration of the original term. The terms of this successor agreement may differ from the original, including potential changes in royalty and advertising fees. Franchisees must also pay a Successor Franchise Fee instead of the Initial Franchise Fee. Failure to execute and return the Successor Franchise Agreement within thirty days of receipt constitutes an election to not acquire the Successor Franchise.
Additional conditions include demonstrating the right to remain in possession of the authorized location or securing an alternative site acceptable to Bft. Franchisees must also execute a general release of claims against Bft and its affiliates. Furthermore, franchisees are responsible for renovating and modernizing their studio to meet Bft's current system standards. Finally, franchisees must have substantially complied with all agreements with Bft and vendors during the original term.