What sections of the Bft Franchise Agreement does Section 3 of this Rider add to regarding Bft?

According to Bft's 2025 Franchise Disclosure Document, Section 3 of the Rider modifies specific sections of the Franchise Agreement related to insolvency. Specifically, it adds to the end of Sections 15.1.A(2) and (3), which address the termination of the franchise by Bft due to the franchisee's insolvency.

The Rider includes a statement clarifying that this section regarding termination due to insolvency might not be enforceable under federal bankruptcy law, citing 11 U.S.C. Sections 101 et seq. This is an important disclosure for prospective Bft franchisees, as it acknowledges the potential limitations of the franchisor's termination rights in the event of the franchisee's bankruptcy.

This type of clause is relatively common in franchise agreements to address the complexities of federal bankruptcy law. Franchisees should be aware that while the franchise agreement may grant Bft the right to terminate the agreement upon insolvency, federal law may impose restrictions on the enforceability of such provisions. It is advisable for potential franchisees to consult with legal counsel to fully understand the implications of these clauses, especially concerning their rights and obligations in the event of financial distress or bankruptcy.