How are the boundaries of a Bft Development Area defined under a Multi-Unit Agreement?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are awarded the right to acquire multiple Franchises for Studios under our form of Multi-Unit Agreement, then we will provide you with a Development Area upon execution of the Multi-Unit Agreement. The size of your Development Area will substantially vary from other System developers based on: (i) the number of Studios we grant you the right to open and operate; and (ii) the location and demographics of the general area where we mutually agree you will be opening these Studios. The boundaries of your Development Area may be described in terms of zip codes, streets, landmarks (both natural and man-made) or county lines, or otherwise delineated on a map attached to the Multi-Unit Agreement.
Source: Item 12 — TERRITORY (FDD pages 50–54)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the boundaries of a Development Area under a Multi-Unit Agreement are not fixed and can vary significantly. The size of the Development Area depends on two main factors: the number of Bft studios the franchisee is authorized to open and operate, and the location and demographics of the area where these studios will be situated. This means that a franchisee planning to open more studios in a densely populated area will likely have a smaller Development Area compared to someone opening fewer studios in a more spread-out location.
The FDD specifies that the boundaries of a Bft Development Area may be defined using various methods. These include zip codes, streets, landmarks (both natural and man-made), or county lines. Alternatively, the boundaries can be visually represented on a map attached to the Multi-Unit Agreement. This flexibility allows Bft to tailor the Development Area to the specific circumstances of each multi-unit franchisee, taking into account local market conditions and growth potential.
It's important to note that while Bft grants a Development Area, it is not an exclusive territory. Franchisees may face competition from other franchisees, company-owned outlets, or other distribution channels. Furthermore, Bft retains certain reserved rights, including the right to operate or license studios at "Non-Traditional Sites" even within a franchisee's Development Area. Prospective franchisees should carefully consider these factors and discuss the specific terms of the Multi-Unit Agreement with Bft to fully understand their rights and obligations.