Under what conditions will a permanently closed Bft studio count towards the Development Schedule?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
If, with Franchisor's permission, Developer (or its approved affiliate) permanently closes any of its Studios, the closed Studio will count toward satisfaction of the Development Schedule only if (a) as of the end of the Development Period in which the Studio closes, Developer and its affiliates are otherwise in compliance with this Agreement, all Franchise Agreements executed pursuant to this Agreement, and all other agreements with Franchisor or its affiliates, and (b) within nine (9) months after Franchisor grants its permission for the closed Studio to close, Developer (or its approved affiliate) develops and commences operation of a replacement Studio in compliance with an applicable Franchise Agreement. If, during the Term, Developer transfers a Studio in accordance with the transferred Studio's Franchise Agreement, the transferred Studio shall continue to be counted in determining Developer's compliance with the Development Schedule so long as it continues to be operated as a Studio. If, at any time, the transferred Studio ceases to be operated as a Studio, it will not count toward satisfaction of the Development Schedule.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, a permanently closed studio can count towards the Development Schedule under specific conditions. The Development Schedule outlines the timeline and number of studios a developer must open. If a Bft developer closes a studio with the franchisor's permission, it will still count towards meeting the Development Schedule if two conditions are met.
First, the developer and its affiliates must be in full compliance with the Multi-Unit Agreement, all related Franchise Agreements, and any other agreements with Bft or its affiliates as of the end of the Development Period in which the studio closes. This means the developer must be up-to-date on all payments, following all operational standards, and otherwise adhering to the terms of their agreements.
Second, within nine months after Bft grants permission for the studio closure, the developer (or an approved affiliate) must develop and begin operating a replacement Bft studio. This replacement studio must be in compliance with an applicable Franchise Agreement. This ensures that the developer is actively working to maintain the required number of operating studios, even after a closure.
If a Bft studio is transferred in accordance with the Franchise Agreement, it will continue to count towards the Development Schedule as long as it remains in operation as a Bft studio. However, if the transferred studio ceases to operate as a Bft studio at any point, it will no longer count towards fulfilling the Development Schedule requirements.