What right does Bft have regarding the purchase price and the franchisee's outstanding debts and liabilities?

According to Bft's 2025 Franchise Disclosure Document, Bft has the right to withhold funds from the purchase price of a Bft studio. These funds must be sufficient to cover all outstanding debts and liabilities of the franchisee and the studio itself. Bft also has the right to use these withheld funds to directly pay off those debts and liabilities.

This provision protects Bft from potential liabilities or financial burdens that a franchisee may have accumulated. By withholding funds and directly paying off debts, Bft ensures that the studio is free from encumbrances when it changes ownership or control. This is a fairly standard practice in franchising, as it safeguards the brand's reputation and financial stability.

For a prospective Bft franchisee, this means that if they decide to sell their studio, any outstanding debts or liabilities they have incurred related to the business will be settled from the sale proceeds. This could reduce the amount the franchisee receives from the sale, as the purchase price will be used to clear any outstanding financial obligations. Franchisees should maintain meticulous financial records and manage their debts responsibly to maximize their return on investment when selling their Bft studio.