Under the Bft Franchise Agreement, what communications are franchisees permitted to initiate without restriction?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, nothing in this Agreement or any other agreement with Franchisor restricts or prohibits any person from initiating communications directly with, responding to any inquiries from, providing testimony before, providing confidential information to, reporting possible violations of law or regulation to, or from filing a claim or assisting with an investigation directly with a self-regulatory authority or a government agency or entity, including the U.S. Securities and Exchange Commission, or from making other disclosures that are protected under the whistleblower provisions of state or federal law or regulation.
No person needsthe prior authorization of Franchisor to engage in conduct protected by the preceding sentence, and no person needs to notify Franchisor that such person has engaged in such conduct.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 55–56)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees are permitted to initiate certain communications without restriction. Specifically, the Franchise Agreement does not restrict or prohibit franchisees from communicating directly with, responding to inquiries from, providing testimony before, or providing confidential information to regulatory or governmental entities. This includes reporting possible violations of law or regulation, filing claims, or assisting with investigations directly with a self-regulatory authority or a government agency, such as the U.S. Securities and Exchange Commission.
This provision also protects franchisees who make disclosures that are protected under whistleblower provisions of state or federal law or regulation. Bft franchisees do not need prior authorization from Bft to engage in such conduct, nor are they required to notify Bft that they have engaged in such conduct.
This clause is included to ensure compliance with laws protecting whistleblowers and to allow franchisees to freely communicate with regulatory bodies without fear of retribution from Bft. This is a standard practice to ensure transparency and adherence to legal and ethical standards within the franchise system.