What was the resolution of the investigation by California's Department of Financial Protection and Innovation (DFPI) regarding Bft's compliance with California's Franchise Investment Law?

According to Bft's 2025 Franchise Disclosure Document, on April 10, 2023, Bft, along with its Member and the Member's Parent, received notice of an investigation from the California Department of Financial Protection and Innovation (DFPI) concerning compliance with California's Franchise Investment Law. The matter was resolved on November 4, 2024, when the Defendants entered into a Consent Order with the DFPI without admitting any wrongdoing.

This resolution indicates that Bft addressed the concerns raised by the DFPI, resulting in a settlement rather than further legal action. While the Consent Order suggests that Bft cooperated with the investigation, the lack of admission of wrongdoing implies that the company may have chosen to settle to avoid the costs and uncertainties of litigation, even if they believed they were in compliance.

For a prospective franchisee, this information suggests that Bft has faced regulatory scrutiny in the past. It would be prudent to inquire further about the nature of the investigation, the specific issues raised by the DFPI, and the terms of the Consent Order to fully understand the implications. This could provide valuable insight into Bft's compliance practices and potential regulatory risks associated with the franchise.