What specific modifications to the Bft Franchise Agreement might trigger the franchisee's responsibility for the franchisor's legal fees?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- C.
Apart from the obligations in Sections 16.11.A and 16.11.B, Franchisee agrees and acknowledges that it will be responsible for the legal fees and other costs that Franchisor incurs in connection with certain modifications that Franchisor agrees to make to the Franchise Agreement, including without limitation, modifications made to address the following situations: (i) relocation; or (ii) any other amendment to extend a given performance deadline of Franchisee, modify the Designated Territory awarded hereunder, or otherwise modify, amend or supplement this Agreement in any way at the request of Franchisee or as necessary for Franchisee to avoid this Agreement being in default or subject to termination.
Franchisor may set forth flat fee amounts designed to help defray the costs associated with addressing certain of the foregoing situations in the context of this Agreement or any other agreement with Franchisor, whether in the Learning Management System or otherwise in a writing distributed to System franchisees.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, a franchisee may be responsible for Bft's legal fees and other costs if Bft agrees to certain modifications to the Franchise Agreement. These modifications include, but are not limited to, changes made to address specific situations.
Specifically, if a franchisee requests a relocation of their Bft studio, or any amendment to extend a performance deadline, modify the designated territory, or otherwise modify, amend, or supplement the agreement in any way at the franchisee's request, the franchisee may be responsible for Bft's legal fees. This also applies if the modifications are necessary for the franchisee to avoid being in default or subject to termination of the agreement.
Bft has the option to set flat fee amounts to help cover the costs associated with addressing these situations, which may be outlined in the Franchise Agreement, the Learning Management System, or other written communications distributed to franchisees. This means that franchisees need to be aware that requesting changes to their franchise agreement could result in additional costs for legal fees incurred by Bft.