What activities are Restricted Parties prohibited from engaging in with a Competing Business after the termination of a Bft Development Agreement?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer further agrees that, in addition to any obligations with respect to Noncompetition Restrictions under the Franchise Agreements, for two (2) years after the expiration or sooner termination of this Agreement, or if applicable, after Developer or an owner of Developer has assigned its interest in this Agreement or in Developer (as applicable), the Restricted Parties or the transferring owner (as applicable) shall not own, maintain, engage in, be employed as an officer, director, or principal of, lend money to, extend credit to, lease/sublease space to, provide services to, or have any interest in or involvement with, any other Competing Business: (a) within the Development Area; (b) within 10 miles outside the boundaries of the Development Area, or (c) within a 10-mile radius of any Studio that is open, under lease or otherwise under development as of the date this Agreement expires or is terminated or, if applicable, as to a transferring owner, the date of such transfer.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, after the expiration or termination of the Development Agreement, or after a Developer or owner assigns their interest, Restricted Parties face specific noncompetition restrictions for two years. These restrictions prevent them from engaging in certain activities related to a Competing Business within defined geographic areas.
Specifically, Restricted Parties are prohibited from owning, maintaining, or being employed as an officer, director, or principal of a Competing Business. They also cannot lend money to, extend credit to, lease/sublease space to, or provide services to a Competing Business. Furthermore, they are barred from having any interest in or involvement with a Competing Business.
These restrictions apply (a) within the Development Area, (b) within 10 miles outside the boundaries of the Development Area, or (c) within a 10-mile radius of any Bft studio that is open, under lease, or otherwise under development when the Development Agreement expires or is terminated, or when a transferring owner transfers their interest. This means a former Bft developer is significantly limited in their ability to be involved with any competing fitness business near their former territory or existing Bft locations.