Does Bft have any restrictions on assigning the franchise contract?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting, ten (10) business days before the execution of the franchise or other agreement, or the payment of any consideration that relates to the franchise relationship.
[SIGNATURE PAGE TO FOLLOW]
IN WITNESS WHEREOF, the parties have executed and delivered this Rider to be effective as of the effective date of the Multi-Unit Agreement.
BFT FRANCHISE SPV, LLC, a Delaware limited liability company [NAME OF DEVELOPER] Capacity:
RIDER TO THE BFT FRANCHISE SPV, LLC MULTI-UNIT AGREEMENT FOR USE IN NORTH DAKOTA
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
The 2025 FDD for Bft addresses assignment of the franchise agreement specifically within the context of New York and North Dakota law. For New York, the FDD states that the franchise must comply with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.) regarding the timing of providing the Franchise Disclosure Document before a sale.
For North Dakota, the FDD notes that any release required as a condition of assignment/transfer will not apply to the extent prohibited by the North Dakota Franchise Investment Law. Additionally, Bft states that to the extent required by applicable law, no assignment will be made except to an assignee who, in their good faith judgment, is willing and financially able to assume their obligations under the Multi-Unit Agreement or Franchise Agreement.
These stipulations indicate that while Bft retains some discretion over assignment approvals, these are subject to legal limitations in certain states like New York and North Dakota. A prospective franchisee should consult with legal counsel to fully understand the implications of these restrictions and how they might affect their ability to transfer the franchise in the future.