What article in the Bft Multi-Unit Agreement addresses non-competition covenants?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in | |||
|---|---|---|---|---|
| Section in Franchise Agreement | Multi-Unit Agreement | Disclosure Document Item | ||
| w. Non-c ompetition covenants | Article 13, Sections 15.1.A(13) and 15.3.G | Article 6 | Item 17 |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 37–50)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Article 6 of the Multi-Unit Agreement addresses non-competition covenants. For the standard Franchise Agreement, non-competition covenants are addressed in Article 13, Sections 15.1.A(13) and 15.3.G.
Non-competition covenants are legally binding agreements that restrict a franchisee's ability to engage in similar business activities, both during the term of the franchise agreement and for a specified period after its termination. These covenants are designed to protect Bft's brand, trade secrets, and customer relationships.
Prospective franchisees should carefully review Article 6 of the Multi-Unit Agreement and Article 13 of the Franchise Agreement with legal counsel to fully understand the scope and implications of these non-competition covenants. Understanding these restrictions is crucial for planning future business ventures and ensuring compliance with the franchise agreement.