Under the Bft Guarantee, what costs and expenses must the Guarantors reimburse the Franchisor for?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
The provisions contained in Article 16 of the Franchise Agreement (Resolution of Disputes), including, without limitation, Section 16.1 (Governing Law), Section 16.3 (Mediation), Section 16.4 (Mandatory Binding Arbitration), Section 16.6 (Consent to Jurisdiction), and Section 16.11 (Attorneys' Fees and Costs), are incorporated into this Guarantee by reference and shall govern this Guarantee and any disputes between the Guarantors and Franchisor. The Guarantors shall reimburse Franchisor for all costs and expenses it incurs in connection with enforcing the terms of this Guarantee.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the Guarantors must reimburse Bft for all costs and expenses it incurs in connection with enforcing the terms of the Guarantee. This obligation is established within the context of Article 16 of the Franchise Agreement, which addresses dispute resolution.
Specifically, the costs and expenses that the Guarantors are responsible for include those arising from enforcing the terms of the Guarantee. This encompasses any legal actions, mediation, mandatory binding arbitration, and associated attorneys' fees and costs that Bft incurs while ensuring the Guarantors fulfill their obligations under the Guarantee.
This provision ensures that Bft can pursue legal remedies against the Guarantors without incurring financial losses, as all related expenses will be borne by the Guarantors. For a prospective Bft franchisee, this highlights the importance of understanding the full scope of the Guarantee and the potential financial responsibilities it entails, particularly in the event of disputes or enforcement actions.