Is there a financial threshold that triggers the disclosure of bankruptcy filings related to Bft?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- The following is added to the end of Item 4:
Neither we, our affiliate, predecessor, officers, or general partners or any other individual who will have management responsibility relating to the sale or operation of franchises offered by this Disclosure Document have, during the 10-year period immediately preceding the date of the Disclosure Document: (a) filed as debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code; (b) obtained a discharge of its debts under the U.S. Bankruptcy Code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a discharge of its debts under the U.S. Bankruptcy Code during or within 1 year after that officer or general partner of the franchisor held this position in the company or partnership.
Source: Item 4 — BANKRUPTCY (FDD page 18)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, there is no specific financial threshold mentioned that triggers the disclosure of bankruptcy filings. Instead, Item 4 includes an addition that requires the disclosure of bankruptcy-related events for Bft, its affiliates, predecessors, officers, or general partners within the 10 years preceding the FDD's date.
Specifically, Bft must disclose if any of these parties (a) filed as a debtor or had a petition filed against them under the U.S. Bankruptcy Code, (b) obtained a discharge of debts under the U.S. Bankruptcy Code, or (c) were principal officers of a company or general partners in a partnership that experienced similar bankruptcy events during or within one year of their tenure. This disclosure requirement is not contingent on any financial threshold but rather on the occurrence of these specific bankruptcy-related events within the specified timeframe.
This means that Bft is obligated to disclose any such bankruptcy filings or discharges regardless of the amount of debt involved. This unconditional disclosure helps prospective franchisees assess the financial stability and history of Bft and its related parties, allowing them to make informed decisions about investing in a Bft franchise.