Under what grounds can a Bft franchisee terminate the Franchise Agreement or Multi-Unit Agreement?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- Termination. The following sentence is added to the end of Section 8.A (Termination of Franchise by Franchisor) of the Multi-Unit Agreement:
Developer also may terminate this Agreement on any grounds available by law under the provisions of Article 33 of the General Business Law of the State of New York.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to the 2025 FDD, a Bft developer (franchisee) may terminate the Multi-Unit Agreement based on any grounds available by law under the provisions of Article 33 of the General Business Law of the State of New York. This provision is specifically added to Section 8.A of the Multi-Unit Agreement, which deals with termination of the franchise by the franchisor.
Several state-specific riders included in the FDD modify or clarify franchisees' rights regarding termination, non-renewal, and legal claims. For instance, the Illinois rider states that developers' rights upon termination and non-renewal are subject to sections 19 and 20 of the Illinois Franchise Disclosure Act. The California rider notes that California Business and Professions Code Sections 20000 through 20043 provide rights to the franchisee concerning termination, transfer, or nonrenewal of a franchise, and if the agreement contains a provision inconsistent with the law, the law will control.
Prospective Bft franchisees should be aware of these state-specific provisions, as they can significantly impact their rights and obligations related to termination. It is advisable to consult with legal counsel to understand the full scope of these protections and how they apply to their specific circumstances, especially when operating in states like New York, Illinois, and California, which have specific franchise laws.