Besides the internet, what other alternative channels of distribution can Bft use to distribute Approved Products and Services within or outside the Designated Territory?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
e under that agreement. Otherwise, we will not modify the size of your Development Area except by mutual written agreement signed by both parties.
Reserved Rights
We and our parents/affiliates reserve the exclusive right to conduct the following activities under the Franchise Agreement and/or Multi-Unit Agreement (as appropriate): (i) establish and operate, and license any third party the right to establish and operate, other Studios and Studios using the Marks and System at any location outside of your Designated Territory(ies) and, if applicable, Development Area; (ii) market, offer and sell products and services that are similar to the products and services offered by the Studio under a different trademark or trademarks at any location, within or outside the Designated Territory(ies) and, if applicable, the Development Area; (iii) use the Marks and System, as well as other such marks we designate, to distribute any Approved Products and/or Approved Services in any alternative channel of distribution, within or outside the Designated Territory(ies) and Development Area (including the Internet and other e-commerce channels and streaming platforms; wholesale
stores, retail stores, catalog sales, etc.) as further described below; (iv) to acquire, merge with, or otherwise affiliate with, and after that own and operate, and franchise or license others to own and operate, any business of any kind, including, without limitation, any business that offers products or services the same as or similar to the Approved Products and Approved Services (but under different marks), within or outside your Designated Territory(ies) and, if applicable, Development Area; (v) use the Marks and System, and license others to use the Marks and System, to engage in any other activities not expressly prohibited in your Franchise Agreement and, if applicable, your Multi-Unit Agreement; and (vi) open and operate, or license third parties the right to open or operate, Studios at "Non-Traditional Sites" both within and outside the Designated Territory and, if applicable, Development Area.
Source: Item 12 — TERRITORY (FDD pages 50–54)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, Bft reserves the right to distribute Approved Products and/or Approved Services through various alternative channels of distribution, both within and outside a franchisee's Designated Territory and Development Area. These channels include wholesale stores, retail stores, and catalog sales. This right is exclusive to Bft and its parents/affiliates.
This means that while a Bft franchisee operates their studio, Bft can also sell similar products and services through other means that may compete with the franchisee's business. These alternative channels are not limited by the franchisee's territory, so Bft could potentially market and sell directly to customers within the franchisee's designated area using these methods.
Bft franchisees do not have any rights to engage in these alternative distribution activities or to share in any of the proceeds Bft receives from them, unless Bft agrees otherwise in writing. Furthermore, Bft is not obligated to compensate franchisees for orders solicited or accepted through these alternative channels within their Designated Territory. This highlights a potential risk for franchisees, as Bft can leverage these channels to supplement or even compete with their studio's sales without providing any direct benefit or compensation to the franchisee.