Is Bft allowed to open Bft Studios at Non-Traditional Sites outside the Designated Territory?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
and (g) open and operate, or license third-parties the right to open or operate, BFT Studios at "Non-Traditional Sites" both within and outside the Designated Territory. A "Non-Traditional Site" is any location that is situated within or as part of a larger venue or facility and, as a result, is likely to draw the predominance of its customers from those persons who are using or attending events in the larger venue or facility (for example, "big box" gyms and/or fitness facilities, cruise ships, military bases, shopping malls, airports, sports facilities and stadiums, industrial or office complexes, hotels, train stations and other transportation facilities, travel plazas, casinos, hospitals, theme parks, convention centers, colleges/universities, multi-unit residential properties, and other similar captive market locations).
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, Bft retains the right to open or license Bft Studios at Non-Traditional Sites both within and outside a franchisee's designated territory. A Non-Traditional Site is defined as a location within a larger venue or facility that primarily draws customers from that venue, such as gyms, cruise ships, military bases, shopping malls, airports, sports facilities, industrial complexes, hotels, train stations, casinos, hospitals, theme parks, convention centers, colleges, residential properties, and other similar locations. This means that even if a franchisee has an exclusive territory, Bft can still establish studios in these types of locations within or outside that territory.
This reservation of rights has significant implications for Bft franchisees. While a franchisee may have a protected territory, Bft can still operate or license studios in non-traditional locations within that territory, potentially drawing customers away from the franchisee's studio. This could impact the franchisee's revenue and profitability. It is important for prospective franchisees to understand this potential overlap and how it might affect their business.
This type of clause is not uncommon in franchising, as franchisors often want to maintain flexibility to expand their brand in various channels and locations. However, it is crucial for franchisees to carefully review the franchise agreement and understand the extent to which the franchisor can operate or license studios in non-traditional locations within or near their territory. Prospective franchisees should discuss this with Bft to understand their strategy for non-traditional locations and how it might impact their business.