Under what condition is a Bft franchisee entitled to a vote in a Co-Op?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may decide to form one or more associations and/or sub-associations of BFT Studios to conduct various marketing-related activities on a cooperative basis (a "Co-Op").
If one or more Co-Ops (local, regional and/or national) are formed covering Franchisee's area, then Franchisee must join and actively participate.
Franchisee will be entitled to one (1) vote if Franchisee is in Good Standing at the time the vote is taken.
Franchisee will be considered in "Good Standing" if it is not in default of any obligation to Franchisor or any of Franchisor's affiliates, whether arising under this Agreement or any other agreement between Franchisee and Franchisor (or any of Franchisor's affiliates), the Learning Management System or other System Standards.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, a franchisee is entitled to one vote in a Co-Op if they are in "Good Standing" at the time the vote is taken. The FDD specifies that Bft may form one or more associations or sub-associations of Bft studios to conduct marketing-related activities on a cooperative basis, referred to as a "Co-Op". If a Co-Op is formed that covers the franchisee's area, the franchisee must join and actively participate.
To be considered in "Good Standing," the Bft franchisee must not be in default of any obligation to the franchisor or any of its affiliates. This includes obligations arising under the Franchise Agreement, any other agreement between the franchisee and Bft (or its affiliates), the Learning Management System, or other System Standards.
This condition ensures that only franchisees who are compliant with their contractual and operational obligations have a say in the Co-Op's decisions. This is a common practice in franchising, as it aligns the voting rights with the franchisee's adherence to the brand's standards and financial commitments. Prospective franchisees should ensure they understand all the requirements for maintaining "Good Standing" to participate fully in the Co-Op's activities and have a voice in marketing decisions.