What action is the Bft franchisee required to take after receiving written notice of a modification to the non-compete agreement from the Franchisor?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Confidential Information for the purpose of assisting Franchisee it is operation of the Studio in accordance with this Agreement; (iv) not make unauthorized copies of any portion of Confidential Information; (v) adopt and maintain administrative, physical, and technical safeguards to prevent unauthorized use or disclosure of any portion of Confidential Information, including by establishing reasonable security and access measures, restricting its disclosure to key personnel, and/or by requiring persons who have access to such Confidential Information to be bound by contractual obligations to protect such Confidential Information and preserve Franchisor's rights and controls in such Confidential Information, in each case that are no less protective or beneficial to Franchisor than the terms of this Agreement; and (vi) at Franchisor's request, destroy or return any portion of the Confidential Information. Upon Franchisor's request, Franchisee shall require the Studio's employees and any independent contractors to execute a nondisclosure and non-competition agreement in a form satisfactory to Franchisor. Franchisee shall not acquire any interest in the Confidential Information other than the right
to utilize it in the development and operation of its Studio in accordance with this Agreement. If Franchisee or Franchisee's employees or any independent contractors learn about an unauthorized use of any Confidential Information, Franchisee must promptly notify Franchisor. Franchisor is not obligated to take any action but will respond to the information as it deems appropriate. If Franchisee at any time conducts, owns, consults with, is employed by or otherwise assists a similar or competitive business to that franchised hereunder, the doctrine of "inevitable disclosure" will apply, and it will be presumed that Franchisee is in violation of this covenant; and in such case, it shall be Franchisee's burden to prove that Franchisee is not in violation of this covenant.
- B. Franchisee acknowledges that Franchisor is not making any representations or warranties, express or implied, with respect to the Confidential Information. Franchisor and its affiliates have no liability to Franchisee and its affiliates for any errors or omissions from the Confidential Information.
- C.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
Based on the 2025 FDD, the document does not explicitly state the actions a Bft franchisee must take upon receiving written notice of modifications to the non-compete agreement. However, the FDD does state that Bft franchisees must ensure that their employees and independent contractors sign a non-disclosure and non-competition agreement in a form satisfactory to Bft.
While the FDD does not detail the specific steps a franchisee must take when the non-compete agreement is modified, it does state that Bft may revise its System Standards and the contents of its Learning Management System, including by written memoranda and notices issued to owners of Bft Studios, and the franchisee agrees to comply with each new or changed standard and specification upon notice from Franchisor.
To fully understand the franchisee's obligations regarding modifications to the non-compete agreement, a prospective franchisee should ask Bft about the specific procedures and requirements for implementing changes to the agreement, including how and when franchisees will be notified, what steps they must take to ensure compliance, and what recourse they have if they disagree with the modifications.