What are Bft's rights if a franchisee notifies them that their representations and warranties are no longer true?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Remedies.
In connection with the foregoing representations and warranties, the parties to this Agreement further agree as follows:
(1) If Franchisor concludes, in its sole opinion, that a breach of any of the foregoing representations and warranties has occurred or is likely to occur, Franchisor may, in addition to any other rights it has under this Agreement or under Applicable Laws:
a. withhold further payments under this Agreement until such time as it has received confirmation to its satisfaction that no breach has occurred or is likely to occur;
b. amend this Agreement as necessary to avoid a violation of law; and
c. terminate this Agreement upon written notice.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, if a franchisee notifies Bft that their representations and warranties are no longer true, Bft has specific rights and remedies. If Bft believes a breach of these representations and warranties has occurred or is likely to occur, Bft can take several actions. These actions are in addition to any other rights Bft has under the agreement or applicable laws.
Specifically, Bft can withhold further payments to the franchisee until it receives confirmation that no breach has occurred or is likely to occur. Bft also has the right to amend the agreement as necessary to avoid a violation of law. Furthermore, Bft can terminate the agreement with written notice to the franchisee.
These provisions provide Bft with significant control and protection in the event a franchisee's representations and warranties are found to be untrue. This is a fairly standard clause in franchise agreements, designed to protect the franchisor from legal or financial harm resulting from franchisee misrepresentations. Prospective franchisees should carefully review the representations and warranties they are making and ensure they can continue to stand by them.