Which sections of the Bft Franchise Agreement describe the franchisee's obligations related to opening the franchise?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
nts to Franchisee the non-exclusive right and license to establish and operate a single Studio, offering only the Approved Services and Approved Products and utilizing only the System and the Marks, at the location identified on Exhibit 1 or as determined in accordance with Section 1.2 below (the "Authorized Location"), in accordance with the provisions and for the Term (defined below) specified in this Agreement:
Franchisee agrees not to conduct the business of its Studio at any location other than the Authorized Location and to use the Authorized Location only for the operation of its Studio. Franchisee also agrees that, once its Studio opens for business, it will continuously operate the Studio in accordance with this Agreement for the duration of the Term.
1.2 Site Approval Process. If the Authorized Location is not identified on Exhibit 1 when Franchisee signs this Agreement, Franchisee must search for acceptable locations for the Studio within the area
identified on Exhibit 1 (the "Designated Market Area") and secure Franchisor's acceptance of the proposed location within 90 days after the Effective Date (the "Site Acceptance Period"). The Designated Market Area has been identified for the sole purpose of facilitating the orderly development of the market, and not for purposes of granting Franchisee any exclusivity or protection within the Designated Market Area. Franchisee acknowledges and agrees that Franchisor does not guarantee that Franchisee will find an acceptable site within the Designated Market Area or during the Site Acceptance Period.
Despite any assistance Franchisor provides to Franchisee, Franchisee is entirely responsible, at its expense, for doing everything necessary to develop and open the Studio in accordance with this Agreement, including, subject to Franchisor's prior written acceptance, timely locating, selecting, and securing possession of the Authorized Location.
Franchisee must provide any information Franchisor requests to aid in its evaluation of Franchisee's proposed site. Franchisor will have sole discretion to accept or reject any proposed site.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 36–37)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, several sections of the Franchise Agreement outline the franchisee's obligations regarding the opening of their Bft studio.
Section 1.2 details the site approval process, stating that if the Authorized Location isn't specified in Exhibit 1 of the agreement, the franchisee must find an acceptable location within the Designated Market Area within 90 days of the Effective Date. The franchisee is responsible for securing Franchisor's acceptance of the proposed location. However, Bft does not guarantee the franchisee will find a suitable site within the Designated Market Area or during the Site Acceptance Period.
Furthermore, the franchisee must obtain lawful possession of the Authorized Location via lease, purchase, or other method and open their studio according to the conditions and deadlines set forth in the agreement. Franchisees must execute a written premises lease agreement accepted by Bft within six months of the agreement's execution and must open the studio for regular classes no later than fifteen months after the agreement's execution. Franchisees are also obligated to comply with Bft's Learning Management System, System Standards, and operating systems, which are subject to change at Bft's discretion.