conditional

What state is the Bft franchisee domiciled in that triggers the need for this rider?

Bft Franchise · 2025 FDD

Answer from 2025 FDD Document

the Franchise Agreement.

BFT FRANCHISE SPV, LLC, a Delaware limited liability company "FRANCHISEE"
[if an individual]
By: [Name], individually
Name: Sign:
Title:
Date: Date: [if a legal entity] [Name], a [state/type] By: Name: Title: Date:

RIDER TO THE BFT FRANCHISE SPV, LLC FRANCHISE AGREEMENT FOR USE IN NEW YORK

THIS RIDER (this "Rider") is made and entered into by and between LLC, a Delaware limited liability company with its principal business address at 17877 Von Karman Ave., BFT FRANCHISE SPV,
Suite 100 Irvine, CA 92614 ("Franchisor"), and,
whose principal business address is ("Franchisee").
1. Background. Franchisor and Franchisee , 20 (the "Franchise are parties to that certain Franchise Agreement dated Agreement") that has been signed concurrently
with the signing of this Rider. This Rider supersedes any inconsistent or conflicting provisions of the
Franchise Agreement. Terms not otherwise defined in this Rider have the meanings as defined in the
Franchise Agreement. This Rider is annexed to and forms part of the Franchise Agreement. This Rider is
being signed because (a) the Studio that Franchisee
Franchisee is
domiciled in the State of New York and
will operate under the Franchise Agreement is or will be located in State of New York, or (b) the offer to
sell the franchise for your Studio
was made or accepted in the State of New York.
2. and 14.2
Releases. The following is added to the end of Sections 3.2.C (Successor Franchise)

(Conditions for Approval of Transfer) of the Franchise Agreement:

Notwithstanding the foregoing all rights enjoyed by Franchisee and any causes of action arising in Franchisee's favor from the provision of Article 33 of the General Business Law of the State of New York and the regulations issued there under shall remain in force to the extent required by the non-waiver provisions of GBL Sections 687.4 and 687.4, as amended.

  1. Conditions for Approval of Transfer. The following sentence is added to the end of Section 14.2 (Conditions for Approval of Transfer) of the Franchise Agreement:

However, to the extent required by applicable law, no assignment will be made except to an assignee who, in Franchisor's good faith judgment, is willing and financially able to assume Franchisor's obligations under this Agreement.

  1. Termination. The following sentence is added to the end of Section 15.1 (Termination of Franchise by Franchisor) of the Franchise Agreement:

Franchisee also may terminate this Agreement on any grounds available by law under the provisions of Article 33 of the General Business Law of the State of New York.

  1. Governing Law; Consent to Jurisdiction. The following sentence is added to the end of Sections 16.1 (Governing Law) and 16.6 (Consent to Jurisdiction) of the Franchise Agreement:

This section shall not be considered a waiver of any right conferred upon Franchisee by the provisions of Article 33 of the New York General Business Law, as amended, and the regulations issued thereunder.

  1. Franchise Questionnaires and Acknowledgements. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor,

franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

  1. Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting, ten (10) business days before the execution of the franchise or other agreement, or the payment of any consideration that relates to the franchise relationship.

[SIGNATURE PAGE TO FOLLOW]

IN WITNESS WHEREOF, the parties have executed and delivered this Rider to be effective as of the effective date of the Franchise Agreement.

BFT FRANCHISE SPV, LLC, a Delaware limited liability company "FRANCHISEE"
[if an individual]
By: [Name], individually
Name:
Title: Sign:
Date: Date: [if a legal entity] [Name], a [state/type] By: Name: Title: Date:

RIDER TO THE BFT FRANCHISE SPV, LLC FRANCHISE AGREEMENT FOR USE IN NORTH DAKOTA

THIS RIDER (this "Rider") is made and entered into by and between BFT FRANCHISE SPV,
LLC, a Delaware limited liability company with its principal business address at 17877 Von Karman Ave.,
Suite 100 Irvine, CA 92614
("Franchisor"), and,
whose principal business address is ("Franchisee").
1. are parties to that certain Franchise Agreement dated
Background. Franchisor
and Franchisee
, 20 (the "Franchise Agreement") that has been signed concurrently
with the signing of this Rider. This Rider supersedes any inconsistent or conflicting provisions of the
Franchise Agreement. Terms not otherwise defined in this Rider have the meanings as defined in the
Franchise Agreement.
This Rider is annexed to and forms part of the Franchise Agreement. This Rider is
being signed because (a) (b) if Franchisee is
an
offer to sell the franchise was made
in North Dakota; or
domiciled in the State of North Dakota its Franchise Agreement
or
the Studio
that Franchisee operates
under
is or will be operated in the State of North Dakota.
  1. Releases.The following is added to the end of Sections 3.2.C (Successor Franchise) and 14.2 (Conditions for Approval of Transfer) of the Franchise Agreement:

Any release required as a condition of renewal and/or assignment/transfer will not apply to the extent prohibited by the North Dakota Franchise Investment Law.

  1. Covenants Not to Compete. The following is added to the end of Article 13 (Covenants Not to Compete) of the Franchise Agreement:

Covenants not to compete such as those mentioned above are generally considered unenforceable in the State of North Dakota; however, Franchisor will enforce the covenants to the maximum extent the law allows.

  1. Lost Revenue Damages. The following language is added to the end of Section 15.3.J (Obligations of Franchisee upon Termination, Expiration or Non-Renewal) of the Franchise Agreement:

Franchisor and Franchisee acknowledge that certain parts of this provision might not be enforceable under the North Dakota Franchise Investment Law. Accordingly, this Section will not be enforced to the extent prohibited by applicable law.

  1. Governing Law. Section 16.1 (Governing Law) of the Franchise Agreement is deleted in its entirety and replaced with the following language:

Except to the extent governed by the Federal Arbitration Act, the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. Sections 1051 etseq.), or other federal law, and except as otherwise required by North Dakota law, this Agreement, the franchise, and all claims arising from the relationship between Franchisor and Franchisee will be governed by the laws of the State of California, without regard to its conflict of laws rules, except that any state law regulating the sale of franchises or governing the relationship of a franchisor and its franchisee will not apply unless its jurisdictional requirements are met independently without reference to this section.

  1. Mediation; Mandatory Binding Arbitration. Sections 16.3 (Mediation) and 16.4 (Mandatory Binding Arbitration) of the Franchise Agreement are supplemented by adding the following to the end of the Section:

Notwithstanding the foregoing, to the extent required by the North Dakota Franchise Investment Law (unless such a requirement is preempted by the Federal Arbitration Act), mediation or arbitration shall be held at a site to which Franchisor and Franchisee mutually agree.

  1. Consent to Jurisdiction. Section 16.6 (Consent to Jurisdiction) of the Franchise Agreement is supplemented by adding the following to the end of the Section:

Notwithstanding the foregoing, to the extent required by the North Dakota Franchise Investment Law, Franchisee may bring an action in North Dakota for claims arising under the North Dakota Franchise Investment Law.

  1. Waiver of Punitive Damages. The following is added to the end of Section 16.7 (Waiver of Punitive Damages) of the Franchise Agreement:

Franchisor and Franchisee acknowledge that certain parts of this provision might not be enforceable under the North Dakota Franchise Investment Law. However, Franchisor and Franchisee agree to enforce the provision to the extent the law allows.

    1. Waiver of Jury Trial. To the extent required by the North Dakota Franchise Investment Law, Section 16.8 (Waiver of Jury Trial) of the Franchise Agreement is deleted.
    1. Waiver of Class Actions; Limitation of Actions. The following is added to the end of Sections 16.9 (Waiver of Class Actions) and 16.12 (Limitation of Actions) of the Franchise Agreement:

The statutes of limitations under North Dakota Law applies with respect to claims arising under the North Dakota Franchise Investment Law.

[SIGNATURE PAGE TO FOLLOW]

IN WITNESS WHEREOF, the parties have executed and delivered this Rider to be effective as of the effective date of the Franchise Agreement.

BFT FRANCHISE SPV, LLC, "FRANCHISEE"
a Delaware limited liability company [if an individual]
By: [Name], individually
Name:
Title: Sign:
Date: Date: [if a legal entity] [Name], a [state/type] By: Name: Title: Date:

RIDER TO THE BFT FRANCHISE SPV, LLC FRANCHISE AGREEMENT FOR USE IN RHODE ISLAND

THIS RIDER (this "Rider") is made and entered into by and between BFT FRANCHISE SPV,
LLC, a Delaware limited liability company with its principal business address at 17877 Von Karman Ave.,
Suite 100 Irvine, CA 92614
("Franchisor"), and,
whose principal business address is ("Franchisee").
1. are parties to that certain Franchise Agreement dated
Background. Franchisor
and Franchisee
, 20 (the "Franchise Agreement") that has been signed concurrently
with the signing of this Rider. This Rider supersedes any inconsistent or conflicting provisions of the
Franchise Agreement. Terms not otherwise defined in this Rider have the meanings as defined in the
Franchise Agreement.
This Rider is annexed to and forms part of the Franchise Agreement. This Rider is
being signed because (a) any of the offering or sales activity relating to the Franchise Agreement occurred
in Rhode Island, or (b) Franchisee is a resident of the State of Rhode Island and the Studio that Franchisee
develops under its Franchise Agreement is or will be operated in the State of Rhode Island.
2. Governing Law. The following is added at the end of Section 16.1 Franchise Agreement: (Governing Law) of the
Section 19-28.1-14 of the Rhode
Island Franchise Investment Act provides that "To the
extent required by applicable law, Rhode Island law will apply to claims arising under the
Rhode Island Franchise
Investment Act."
3. Consent to Jurisdiction.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)

What This Means (2025 FDD)

According to the 2025 Bft Franchise Disclosure Document, a rider to the franchise agreement is required if the franchisee is domiciled in New York, North Dakota, Washington, Rhode Island, or Maryland. Specifically, the rider is triggered in New York if the franchisee is domiciled in the state, or if an offer to sell or buy the franchise was made or accepted there.

For North Dakota, the rider is necessary if the franchisee is domiciled there or if the offer to sell the franchise was made in North Dakota. In Washington, the rider is required if the offer is directed into the state and received there, if the franchisee is a resident, or if the studio is located or operated in Washington.

In Rhode Island, the rider is triggered if any offering or sales activity related to the franchise agreement occurred in Rhode Island, or if the franchisee is a resident and the studio will be operated there. For Maryland, the rider is needed if the franchisee is a resident, the studio will be operated there, or if the offer to sell or buy the franchise was made or accepted in Maryland. These riders modify the standard franchise agreement to comply with specific state laws and regulations, ensuring that Bft and its franchisees adhere to local legal requirements.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.