What is the 'Designated Territory' in the context of a Bft franchise?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Once it acknowledges its acceptance of the Authorized Location and Designated Territory, Franchisee must thereafter obtain lawful possession of the Authorized Location by lease, purchase or other method and open its Studio in accordance with the conditions and deadlines set forth in this Agreement.
Franchisor will have the right to modify the boundaries of the Designated Territory if (a) Franchisee relocates its Studio as permitted under this Agreement, or (b) at the time of any request for grant of a successor franchise or proposed Transfer (defined below), the population of the Designated Territory is over 50,000, with said modifications designed to afford Franchisee with a territory that contains a population that is similar to that contained within the original Designated Territory.
- 1.3 Exclusivity for Designated Territory. As long as Franchisee is in compliance with this Agreement and except as described in Section 1.4 below, Franchisor will not operate, or grant a license to a third-party to operate, during the Term, a BFT Studio located within the Designated Territory.
- 1.4 Rights Reserved to Franchisor. For the avoidance of doubt, Franchisor reserves for itself and its affiliates all rights not expressly granted to Franchisee in this Agreement and the right to do all things that Franchisor does not expressly agree in this Agreement not to do, in each case, without regard to proximity to the Studio and without any compensation to Franchisee, and on such terms and conditions as Franchisor deems appropriate. Without limitation, Franchisor and its affiliates may, themselves or through authorized third-parties (and Franchisee is not granted the right to): (a) open and operate, and license third-parties the right to open or operate, other BFT Studios utilizing the Marks and System outside the Designated Territory;
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the franchisee is granted a 'Designated Territory' related to their studio location. Once the franchisee acknowledges acceptance of the Authorized Location and Designated Territory, they must obtain lawful possession of the Authorized Location and open their Bft studio according to the agreement's conditions and deadlines. Bft may modify the boundaries of the Designated Territory if the franchisee relocates their studio or if, at the time of a request for a successor franchise or transfer, the population of the Designated Territory exceeds 50,000. In such cases, modifications will aim to provide the franchisee with a territory containing a population similar to the original Designated Territory.
As long as the franchisee complies with the Franchise Agreement, Bft will not operate or license a third party to operate a Bft studio within the Designated Territory during the term of the agreement, with some exceptions. However, Bft reserves the right to operate or license others to operate Bft studios outside the Designated Territory. Bft also retains all rights not expressly granted to the franchisee in the agreement, without regard to proximity to the studio and without compensation to the franchisee.
Bft and its affiliates may open and operate, or license third parties to open or operate, other Bft studios utilizing the Marks and System outside the Designated Territory. The franchisee is not granted the right to open and operate other Bft studios outside of their designated territory. This means that while franchisees receive some territorial protection, Bft retains considerable freedom to expand its brand through other channels and locations, potentially impacting the franchisee's long-term market share.