What specific actions must a Bft Franchisee take to demonstrate their independent contractor status, as specified by the Franchisor?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
11.1 Independent Contractor. The only relationship between Franchisor and Franchisee created by this Agreement is that of independent contractor. The business conducted by Franchisee is completely separate and apart from any business that may be operated by Franchisor and nothing in this Agreement shall create a fiduciary relationship between them or constitute either Party as agent, legal representative, subsidiary, joint venturer, partner, employee, servant or fiduciary of the other Party for any purpose whatsoever. Franchisee shall hold itself out to the public as an independent contractor operating the business pursuant to a license from Franchisor, and Franchisee agrees to take such action including exhibiting a notice to that effect in such content, form and place as Franchisor may specify. It is further specifically agreed that Franchisee is not an affiliate of Franchisor and that neither Party shall have authority to act for the other in any manner to create any obligations or indebtedness that would be binding upon the other Party. Neither Party shall be in any way responsible for any acts and/or omissions of the other, its agents, servants or employees and no representation to anyone will be made by either Party that would create an implied or apparent agency or other similar relationship by and between the Parties.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the franchisee must hold themselves out to the public as an independent contractor operating the business under a license from Bft. This includes exhibiting a notice to that effect in a content, form, and place specified by Bft.
This requirement emphasizes that the franchisee's business is separate from Bft's business operations. The agreement explicitly states that the relationship between Bft and the franchisee is not a fiduciary one, nor does it constitute either party as an agent, legal representative, subsidiary, joint venturer, partner, employee, servant, or fiduciary of the other for any purpose. This reinforces the independent nature of the franchisee's operation.
Furthermore, the agreement specifies that neither party has the authority to act for the other in any manner that would create obligations or indebtedness binding upon the other party. Each party is responsible for their own acts and omissions, and no representations should be made that would imply an agency or similar relationship between them. This is a standard clause in franchise agreements to protect the franchisor from liabilities incurred by franchisees and to clarify the distinct legal and financial responsibilities of each party.