Under what circumstances can Bft appoint a manager to operate the studio on behalf of the franchisee's estate?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.3 Death or Disability of Franchisee. In the event of the death or disability of Franchisee, if an individual, or of a stockholder of a corporate Franchisee, or of a partner of a Franchisee which is a partnership, or a member of a Franchisee which is a limited liability company, the transfer of Franchisee's or the deceased stockholder's, partner's or member's interest in this Agreement to his or her heirs, trust, personal representative or conservators, as applicable, must occur within six (6) months of the death or disability, but, shall neither be deemed a Transfer by Franchisee (provided that the responsible management employees or agents of Franchisee have been satisfactorily trained at Franchisor's Initial Training Program) nor obligate Franchisee to pay any transfer fee.
If Franchisor determines (i) there is no imminent transfer to a qualified successor or (ii) there is no heir or other principal person capable of operating the Studio, Franchisor shall have the right, but not the obligation, to immediately appoint a manager and commence operating the Studio on behalf of Franchisee or its estate.
Franchisee shall be obligated to, and shall, pay to Franchisor all reasonable costs and expenses for such management assistance, including without limitation, the manager's salary, room and board, travel expenses and all other related expenses of the Franchisor appointed manager.
Operation of the Studio during any such period shall be for and on behalf of Franchisee, provided that Franchisor shall only have a duty to utilize reasonable efforts and shall not be liable to Franchisee or its owners for any debts, loses or obligations incurred by the Studio, or to any creditor of Franchisee for any supplies, inventory, equipment, furniture, fixtures or services purchased by the Studio during any period in which it is managed by a Franchisor appointed manager.
Franchisor may, in its sole discretion, extend the six (6) month period of time for completing a transfer contemplated by this Section.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, in the event of the death or disability of a franchisee, Bft has the right to appoint a manager to operate the studio on behalf of the franchisee or their estate under specific conditions. This applies if the franchisee is an individual, a stockholder of a corporate franchisee, a partner of a partnership franchisee, or a member of a limited liability company franchisee. The transfer of the franchisee's interest to heirs, trusts, personal representatives, or conservators must occur within six months of the death or disability.
Bft can appoint a manager if it determines that there is no imminent transfer to a qualified successor or if there is no heir or principal person capable of operating the studio. If these conditions are met, Bft has the right, but not the obligation, to immediately appoint a manager and begin operating the studio on behalf of the franchisee or their estate.
The franchisee or their estate is responsible for paying all reasonable costs and expenses associated with this management assistance. These costs include the manager's salary, room and board, travel expenses, and all other related expenses. Operation of the studio during this period is for and on behalf of the franchisee, but Bft is only required to use reasonable efforts and is not liable for any debts, losses, or obligations incurred by the studio, or to any creditor of the franchisee for any supplies, inventory, equipment, furniture, fixtures, or services purchased during the management period. Bft may extend the six-month period for completing a transfer at its discretion.