Is there a Guarantee, Indemnification and Acknowledgment included as an exhibit to the Bft Franchise Agreement?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
I have received a disclosure document dated March 14, 2025, that included the following Exhibits:
Exhibit A Form of Franchise Agreement and Exhibits Exhibit H State Specific Addenda Exhibit B List of State Agents for Service of Process and State Administrators Exhibit I List of Franchisees Exhibit C Financial Statements Exhibit J List of Franchisees That Left System Exhibit D Guaranty of Performance Exhibit K Form of Multi-Unit Agreement Exhibit E Statement of Prospective Franchisee Exhibit L-1 Form of Sourcing Fee Addendum (Franchise Agreement) Exhibit F Table of Contents of Manual Exhibit L-2 Form of Sourcing Fee Addendum (Multi-Unit Agreement) Exhibit G Form of General Release Exhibit M Receipts
Source: Item 22 — CONTRACTS (FDD page 79)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, a Guaranty of Performance is included as an exhibit. Specifically, Exhibit D is listed as the Guaranty of Performance. This suggests that Bft requires a personal guarantee from the franchisee or its owners to ensure the obligations under the Franchise Agreement are met.
This requirement is a fairly standard practice in franchising, especially for smaller or newer franchisees. The personal guarantee means that the franchisee's personal assets could be at risk if the business fails to meet its financial or contractual obligations to Bft. This guarantee provides Bft with an additional layer of security, ensuring that someone is personally liable for the franchise's performance.
Prospective franchisees should carefully review the terms of the Guaranty of Performance (Exhibit D) with a legal advisor to fully understand the extent of their personal liability and the conditions under which the guarantee can be enforced by Bft. Understanding these terms is crucial before signing the Franchise Agreement.