Under what circumstances can Bft terminate a Franchise Agreement related to the Minimum Monthly Gross Sales Quota?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
mer service. Your employees, including independent contractors, must meet minimum standards for courteousness and customer service.
Minimum Gross Sales Quota(s)
Unless waived by us due to unique market conditions, you must meet a certain minimum monthly Gross Sales quota (the "Minimum Monthly Gross Sales Quota"), as follows: (i) you must achieve and maintain trailing 12-month average monthly Gross Sales of $15,000 by the 1st anniversary of your Studio's Soft Opening; and (ii) you must achieve and maintain trailing 12-month average monthly Gross Sales of $20,000 by the 2nd anniversary of your Studio's Soft Opening and each successive anniversary.
If you fail to meet the Minimum Monthly Gross Sales Quota at any time during the term of your Franchise Agreement, we may institute a mandatory corrective training program upon written notice to you. You will be obligated, at your expense, to participate in and implement all temporary and permanent corrective measures that we require to address the performance standards not achieved. However, if you fail to participate in and implement all temporary and permanent corrective measures that we require, or if you fail to achieve the Minimum Monthly Gross Sales Quota during any trailing 36-month peri
Source: Item 12 — TERRITORY (FDD pages 50–54)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft can terminate a Franchise Agreement if a franchisee fails to meet the Minimum Monthly Gross Sales Quota under specific conditions. The franchisee must achieve and maintain a trailing 12-month average monthly Gross Sales of $15,000 by the first anniversary of the Studio's Soft Opening. This quota increases to $20,000 by the second anniversary and each subsequent anniversary.
If a franchisee fails to meet the Minimum Monthly Gross Sales Quota at any time, Bft may require the franchisee to participate in a mandatory corrective training program at the franchisee's expense. The franchisee is obligated to implement all temporary and permanent corrective measures that Bft requires.
However, Bft can terminate the Franchise Agreement if the franchisee fails to participate in and implement the required corrective measures, or if the franchisee fails to achieve the Minimum Monthly Gross Sales Quota during any trailing 36-month period, regardless of participation in corrective training programs. This termination is enacted through written notice to the franchisee.