Does Bft allow competition from outlets they own?

According to Bft's 2025 Franchise Disclosure Document, franchisees may face competition from outlets that Bft owns. Specifically, the FDD states that franchisees will not receive an exclusive territory and "may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control." This means Bft retains the right to operate its own Bft studios, or studios under other brands, that could compete directly with a franchisee's location.

This lack of an exclusive territory has significant implications for prospective Bft franchisees. It means that Bft could open a corporate-owned studio nearby, potentially drawing customers away from the franchised location. Similarly, other franchisees could also be operating in the same general area, increasing competition for clients. This is a notable risk factor to consider, as it directly impacts the potential revenue and profitability of a Bft franchise.

Bft does offer a Designated Territory, within which Bft will not operate or grant a license to a third party to operate a Bft studio, provided the franchisee remains in compliance with the Franchise Agreement. However, Bft retains significant rights, including the right to acquire, merge with, or operate businesses offering similar services under different marks, even within or outside the Designated Territory. Bft also has the right to open Bft studios at "Non-Traditional Sites" such as gyms, military bases, shopping malls, and airports, both within and outside the Designated Territory. These reserved rights further emphasize the non-exclusive nature of the territory granted to Bft franchisees.

Prospective franchisees should carefully consider the potential impact of this competition when evaluating the Bft franchise opportunity. It would be prudent to inquire about Bft's plans for corporate-owned studios or other franchised locations in the area, as well as its strategy for managing potential conflicts between different brands under the Xponential Fitness umbrella. Understanding these factors is crucial for assessing the long-term viability and profitability of a Bft franchise.