After the Bft agreement expires or terminates, is a franchisee allowed to contact 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, a franchisee is restricted from contacting Bft's suppliers or vendors for any competitive business purpose for a period of two years after the franchise agreement's expiration or termination. This restriction applies regardless of whether the termination is initiated by Bft or the franchisee, or if the franchisee has assigned their interest in the agreement. This obligation extends not only to the franchisee but also to any other Restricted Party.
This non-solicitation covenant is designed to protect Bft's relationships with its suppliers and vendors, preventing former franchisees from leveraging their knowledge of these relationships to gain an unfair competitive advantage. The term 'Restricted Party' is not defined in the provided excerpts, so it is important to clarify with Bft who this includes to fully understand the scope of this restriction.
For a prospective franchisee, this means that after leaving the Bft system, they cannot use their knowledge of Bft's supply chain to benefit a competing business. This restriction is in place for two years, and violating it could lead to legal consequences. It is a fairly standard practice in franchising to have these types of non-solicitation covenants to protect the franchisor's business relationships and trade secrets.