What article of 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 | ||
| Territorial development and | Sections 8.7 and 15.1.B(12) | Sections 2.C and 2.D, Exhibit A | Item 12 | |
| k. | ||||
| sales quotas | ||||
| Ongoing product/service | Sections 6.5 and 8.4 | Not Applicable | Items 8 and 11 | |
| l. | ||||
| purchases | ||||
| Maintenance, appearance and | Sections 7.1 and 8.1 | Not Applicable | Items 6 and 17 | |
| m. | ||||
| remodeling requirements | ||||
| n. Insura nce | Sections 10.5 and 15.1.B(8) | Not Applicable | Items 6, 7 and 8 | |
| o. Adve rtising and Fund | Article 9, Sections 5.6 and 15.1.B(5) | Not Applicable | Items 6 and 11 | |
| p. Indem nification | Sections 4.1, 6.9, 7.1.E, 11.2, 15.4, and Exhibit 3 | Section 7.B | Item 6 | |
| Owner’s participation/ q. management/staffing | Sections 2.2.B, 5.5.A, 5.5.B, 8.3, and 8.6 | Article 1 | Item 15 | |
| r. Recor ds and reports | Section 10.1 | Article 10 | Item 11 | |
| s. Inspe ctions and audits | Sections 8.2 and 10.2 | Not Applicable | Items 11 | |
| t. Trans fer | Section 13.1.B(3), Article 14, and Section 15.1.A(6) | Article 9 | Items 6 and 17 | |
| u. Renew al | Section 3.2 | Not Applicable | Item 17 | |
| v. Post- termination obligations | Article 13 and Section 15.3 | Section 8.C | Item 17 | |
| 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. The franchise agreement itself references Article 13, Sections 15.1.A(13) and 15.3.G regarding non-competition covenants.
For a prospective Bft multi-unit franchisee, this means that the terms and conditions regarding what they can and cannot do during and after the franchise agreement, in relation to competitive businesses, are specifically outlined in Article 6 of their Multi-Unit Agreement. It is important to carefully review this section with legal counsel to fully understand the restrictions and obligations.
Non-competition clauses are standard in franchising to protect the brand and system. These clauses typically restrict a franchisee from operating a similar business during the term of the franchise agreement and for a certain period after termination or expiration, within a specific geographic area. Understanding the scope and enforceability of these covenants is crucial for any franchisee.