What section and exhibit in the Bft Franchise Agreement cover the guarantee?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in | |||
|---|---|---|---|---|
| Section in Franchise Agreement | Multi-Unit Agreement | Disclosure Document Item | ||
| Territorial development and | Sections 8.7 and 15.1.B(12) | Sections 2.C and 2.D, Exhibit A | Item 12 | |
| k. | ||||
| sales quotas | ||||
| Ongoing product/service | Sections 6.5 and 8.4 | Not Applicable | Items 8 and 11 | |
| l. | ||||
| purchases | ||||
| Maintenance, appearance and | Sections 7.1 and 8.1 | Not Applicable | Items 6 and 17 | |
| m. | ||||
| remodeling requirements | ||||
| n. Insura nce | Sections 10.5 and 15.1.B(8) | Not Applicable | Items 6, 7 and 8 | |
| o. Adve rtising and Fund | Article 9, Sections 5.6 and 15.1.B(5) | Not Applicable | Items 6 and 11 | |
| p. Indem nification | Sections 4.1, 6.9, 7.1.E, 11.2, 15.4, and Exhibit 3 | Section 7.B | Item 6 | |
| Owner’s participation/ q. management/staffing | Sections 2.2.B, 5.5.A, 5.5.B, 8.3, and 8.6 | Article 1 | Item 15 | |
| r. Recor ds and reports | Section 10.1 | Article 10 | Item 11 | |
| s. Inspe ctions and audits | Sections 8.2 and 10.2 | Not Applicable | Items 11 | |
| t. Trans fer | Section 13.1.B(3), Article 14, and Section 15.1.A(6) | Article 9 | Items 6 and 17 | |
| u. Renew al | Section 3.2 | Not Applicable | Item 17 | |
| v. Post- termination obligations | Article 13 and Section 15.3 | Section 8.C | Item 17 | |
| w. Non-c ompetition covenants | Article 13, Sections 15.1.A(13) and 15.3.G | Article 6 | Item 17 | |
| x. Dispu te resolution | Article 16 | Article 12 | Item 17 | |
| y. Guara ntee | Section 2.2.B and Exhibit 3 Initial Training Program Owner/Operator Training Module | Exhibit B | Item 1, Exhibit D |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 37–50)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the guarantee is addressed in Section 2.2.B and Exhibit 3 of the Franchise Agreement. Additionally, Exhibit B of the Multi-Unit Agreement also pertains to the guarantee.
For a prospective Bft franchisee, this means that the specific terms and conditions of any guarantee provided by the franchisee, or required by Bft, will be detailed in these sections of the Franchise Agreement and its exhibits. It is important to carefully review these sections to understand the scope and limitations of the guarantee, as well as the obligations and responsibilities of both the franchisee and Bft.
Understanding the guarantee is crucial, as it defines the circumstances under which Bft may be held liable or responsible for certain aspects of the franchise operation. Franchisees should pay close attention to the conditions that trigger the guarantee, the duration of the guarantee, and any exclusions or limitations that may apply. Consulting with a legal professional is advisable to fully comprehend the implications of the guarantee and ensure that the franchisee's interests are adequately protected.