After the Bft agreement ends, are franchisees prohibited from contacting Bft's suppliers for competitive business purposes?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. After the Term of this Agreement. Franchisee agrees that, for two (2) years after the expiration or termination (by Franchisor or by Franchisee for any reason) of this Agreement or after Franchisee has assigned its interest in this Agreement, neither Franchisee nor any other Restricted Party, will (i) solicit business from customers of Franchisee's former Studio or any other BFT Studio, or (ii) contact any of Franchisor's suppliers or vendors for any competitive business purpose.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees are restricted from contacting Bft's suppliers for competitive business purposes after the franchise agreement terminates. Specifically, for a period of two years following the expiration or termination of the agreement, the franchisee (or any other Restricted Party) is prohibited from contacting any of Bft's suppliers or vendors for any competitive business purpose. This restriction applies regardless of whether the termination is initiated by the franchisor or the franchisee.
This provision is designed to protect Bft's relationships with its suppliers and prevent franchisees from leveraging those relationships to create a competing business. The term "Restricted Party" would likely be defined in the agreement and could include the franchisee's owners, affiliates, or anyone acting on their behalf. The restriction is in place for two years, which is meant to give Bft sufficient time to protect its business relationships after a franchise agreement ends.
For a prospective Bft franchisee, this means that after leaving the Bft system, they cannot use their knowledge of Bft's supply chain to gain an unfair advantage. If a franchisee wishes to start a competing fitness business after their Bft agreement ends, they will need to find entirely new suppliers and vendors without contacting any of Bft's existing partners. This non-solicitation covenant is a standard practice in franchising to safeguard the franchisor's established business network and trade relationships.