After the Bft agreement expires or terminates, for how long is the franchisee restricted from soliciting business from customers of their former Bft studio?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
13.2 Non-Solicitation Covenants.
- A. During the Term of this Agreement. Franchisee agrees that it will not, during the Term of this Agreement, divert or seek to divert customers from another BFT Studio to its Studio.
- 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 soliciting business from customers of their former Bft studio for a period of two years after the termination or expiration of the franchise agreement. This restriction applies regardless of whether the termination is initiated by Bft or by the franchisee, and it also applies if the franchisee assigns their interest in the agreement. The restriction extends not only to the customers of the franchisee's former studio but also to customers of any other Bft studio.
This non-solicitation covenant prevents a former franchisee from leveraging their knowledge of Bft's customer base to unfairly compete with existing Bft locations. It ensures that franchisees who leave the system cannot directly poach clients they gained while operating under the Bft brand. This protection is crucial for maintaining the stability and customer loyalty of the Bft franchise network.
In addition to the restriction on soliciting customers, the franchisee is also prohibited from contacting any of Bft's suppliers or vendors for any competitive business purpose during the same two-year period. This provision aims to protect Bft's relationships with its suppliers and prevent former franchisees from using those connections to gain an unfair advantage in a competing business. These restrictions are typical in franchise agreements to protect the brand and its franchisees.
Prospective franchisees should carefully consider these post-termination restrictions and how they might impact their future business endeavors if they decide to leave the Bft system. It is important to understand the scope and duration of these covenants before entering into a franchise agreement.