Who is responsible for paying the costs and expenses of a Bft-appointed manager in the event of franchisee death or disability?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of the death or disability of Franchisee, if an individual, or of a stockholder of a corporate Franchisee, or of a partner of a Franchisee which is a partnership, or a member of a Franchisee which is a limited liability company, the transfer of Franchisee's or the deceased stockholder's, partner's or member's interest in this Agreement to his or her heirs, trust, personal representative or conservators, as applicable, must occur within six (6) months of the death or disability, but, shall neither be deemed a Transfer by Franchisee (provided that the responsible management employees or agents of Franchisee have been satisfactorily trained at Franchisor's Initial Training Program) nor obligate Franchisee to pay any transfer fee.
If Franchisor determines (i) there is no imminent transfer to a qualified successor or (ii) there is no heir or other principal person capable of operating the Studio, Franchisor shall have the right, but not the obligation, to immediately appoint a manager and commence operating the Studio on behalf of Franchisee or its estate.
Franchisee shall be obligated to, and shall, pay to Franchisor all reasonable costs and expenses for such management assistance, including without limitation, the manager's salary, room and board, travel expenses and all other related expenses of the Franchisor appointed manager.
Operation of the Studio during any such period shall be for and on behalf of Franchisee, provided that Franchisor shall only have a duty to utilize reasonable efforts and shall not be liable to Franchisee or its owners for any debts, loses or obligations incurred by the Studio, or to any creditor of Franchisee for any supplies, inventory, equipment, furniture, fixtures or services purchased by the Studio during any period in which it is managed by a Franchisor appointed manager.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, in the event of the death or disability of a franchisee, the franchisee is responsible for covering the costs and expenses of a Bft-appointed manager. Specifically, if Bft determines that there is no qualified successor or capable heir to operate the studio, Bft has the right to appoint a manager to run the studio on behalf of the franchisee or their estate.
The franchisee is obligated to pay all reasonable costs associated with this management assistance. These costs include, but are not limited to, the manager's salary, room and board, travel expenses, and any other related expenses incurred by the Bft-appointed manager.
It is important to note that while Bft may appoint a manager and operate the studio, it does so on behalf of the franchisee. Bft's duty is to utilize reasonable efforts in managing the studio, and Bft is not liable to the franchisee or their owners for any debts, losses, or obligations incurred by the studio during this period. Additionally, Bft is not liable to any creditor of the franchisee for supplies, inventory, equipment, furniture, fixtures, or services purchased by the studio while under the management of a Bft-appointed manager.