Under what conditions can Bft modify the frequency, intervals, and manner in which amounts owed to it are paid?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor reserves the right to designate and/or change the amount, scope, interval, or manner of payment of the Technology Fee, including the party to whom payment is made, at any time upon providing reasonable written notice to Franchisee; provided, however , Franchisor will not increase the Technology Fee by more than 10% annually.
The Technology Fee may be collected by Franchisor at the same time as the Royalty Fees due hereunder.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft has the right to modify the amount, scope, interval, or manner of payment of the Technology Fee at any time, provided they give reasonable written notice to the franchisee. However, Bft will not increase the Technology Fee by more than 10% annually. The Technology Fee may be collected by Bft at the same time as the Royalty Fees.
In general, franchisors often retain the flexibility to adjust fees to adapt to changing market conditions or operational needs. However, they typically must provide franchisees with reasonable notice of such changes. The 10% annual cap on increases to the Technology Fee provides some predictability for the franchisee.
As a prospective franchisee, it would be prudent to inquire about the typical frequency and magnitude of Technology Fee adjustments, as well as the specific reasons that might trigger such changes. Understanding the factors that influence these fees can help a franchisee better anticipate and manage their ongoing costs.