Under what conditions can Bft terminate the Franchise Agreement with a cure opportunity?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Termination with Cure Opportunity.
Franchisor may terminate this Agreement and all rights granted hereunder, effective immediately on delivery of written notice, if:
(a) Developer fails to obtain Franchisor's prior written approval or consent any time such approval or consent is required by this Agreement, fails to comply with any provision of this Agreement in respect of which Franchisor is not authorized, under Section 8.A(1) above, to terminate immediately, or fails to act in good faith in carrying out the terms of this Agreement and, in any case, does not correct such failure within 30 days after delivery of Franchisor's written notice of such failure; or
(b) Developer or its affiliates fail to pay when due any amount owing to Franchisor or its affiliates under this Agreement or any other agreement and does not correct such failure within 10 days after delivery of Franchisor's written notice.
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, Bft can terminate the Franchise Agreement with a cure opportunity under specific circumstances. Bft may terminate the agreement if the franchisee fails to obtain prior written approval or consent when required by the agreement, fails to comply with any provision of the agreement for which immediate termination is not authorized, or fails to act in good faith in carrying out the terms of the agreement. In these instances, the franchisee has 30 days after receiving written notice from Bft to correct the failure.
Additionally, Bft can terminate the agreement if the franchisee or its affiliates fail to pay any amount owed to Bft or its affiliates when due under the Franchise Agreement or any other agreement. In this case, the franchisee has 10 days after receiving written notice from Bft to correct the failure.
These cure periods provide an opportunity for the franchisee to rectify the issue and avoid termination of the agreement. It is important for prospective franchisees to understand these conditions and ensure they can meet the obligations outlined in the Franchise Agreement to maintain a good standing with Bft.