What article and sections in the Bft Franchise Agreement address 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, the non-competition covenants within the Franchise Agreement are detailed in Article 13, Sections 15.1.A(13), and 15.3.G. For multi-unit agreements, these covenants are addressed in Article 6.
These sections likely outline the restrictions placed on franchisees both during the term of the agreement and after its termination. These restrictions typically prevent franchisees from engaging in similar businesses that would directly compete with Bft. The terms define the scope of prohibited activities, the geographic area of restriction, and the duration of the non-compete obligations.
Prospective franchisees should carefully review these sections with legal counsel to fully understand the implications. Understanding the non-compete terms is crucial, as they can significantly impact a franchisee's ability to operate or invest in related businesses, especially after the franchise agreement ends. The restrictions could limit future business opportunities within or outside the fitness industry.