What actions related to the Bft system or confidential information are prohibited for franchisees?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Confidential Information does not include information, knowledge, or know-how, which is lawfully known to the public without violation of applicable law or an obligation to Franchisor or its affiliates, or any Restricted Data.
Franchisee (and its Owners, if Franchisee is a legal entity) agrees that, during and after the Term, Franchisee will, and cause its spouses, immediate family members, affiliates, and assigns to: (i) process, retain, use, collect, and disclose Confidential Information strictly to the limited extent, and in such a manner, as necessary for the development and operation of the Studio in accordance with this Agreement, and not for any other purposes of any kind; (ii) process, retain, use, collect, and disclose Confidential Information strictly in accordance with the privacy policies and System Standards and Franchisee's and its representative's instructions; (iii) keep confidential and not disclose, sell, distribute, or trade Confidential Information to any person other than those of Franchisee's employees, independent contractors, and representatives who need to know such 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
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees face several restrictions regarding the use and protection of the Bft system and confidential information. Franchisees must ensure that they, their employees, and independent contractors only use confidential information to operate their Bft studio as outlined in the franchise agreement. They are prohibited from acquiring any ownership interest in the confidential information itself, beyond the right to use it for their studio's operation.
The FDD emphasizes the importance of maintaining the confidentiality of Bft's proprietary information. Franchisees must prevent unauthorized access or disclosure of confidential information, including the Learning Management System. If a franchisee compromises the security of the Learning Management System through intentional actions or gross negligence, they will be required to compensate Bft for the breach and any related damage to the brand and system. This obligation exists irrespective of any limitations of remedies detailed elsewhere in the agreement.
Furthermore, franchisees and their associated parties (including family members and affiliates) must adhere to strict guidelines on how they handle confidential information. They are only allowed to use, collect, and disclose this information to the extent necessary for operating the studio according to the franchise agreement, and must follow Bft's privacy policies and system standards. Franchisees are prohibited from selling, distributing, or trading confidential information to unauthorized parties and must implement security measures to prevent unauthorized use or disclosure. Upon request from Bft, franchisees must either destroy or return any portion of the confidential information.