factual

Are Bft developers and their owners subject to the Noncompetition Restrictions described in the Franchise Agreements?

Bft Franchise · 2025 FDD

Answer from 2025 FDD Document

A. Noncompetition Restrictions. Developer acknowledges that, under each Franchise Agreement executed pursuant to this Agreement, the Restricted Parties (as defined in the Franchise Agreements) are subject to certain restrictions and covenants regarding activities which are deemed competitive with those of Franchisor, including restrictions regarding Competing Businesses, as that term is defined in the Franchise Agreement (the "Noncompetition Restrictions"). Developer acknowledges and agrees that it and its owners are subject to, and will comply with, all of the Noncompetition Restrictions described in the Franchise Agreements, each of which is adopted herein as though copied in its entirety. Developer further agrees that, in addition to any obligations with respect to Noncompetition Restrictions under the Franchise Agreements, for two (2) years after the expiration or sooner termination of this Agreement, or if applicable, after Developer or an owner of Developer has assigned its interest in this Agreement or in Developer (as applicable), the Restricted Parties or the transferring owner (as applicable) shall not own, maintain, engage in, be employed as an officer, director, or principal of, lend money to, extend credit to, lease/sublease space to, provide services to, or have any interest in or involvement with, any other Competing Business: (a) within the Development Area; (b) within 10 miles outside the boundaries of the Development Area, or (c) within a 10-mile radius of any Studio that is open, under lease or otherwise under development as of the date this Agreement expires or is terminated or, if applicable, as to a transferring owner, the date of such transfer.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)

What This Means (2025 FDD)

According to the 2025 Bft Franchise Disclosure Document, Bft developers and their owners are subject to noncompetition restrictions. As a developer, you acknowledge that under each Franchise Agreement, certain parties are restricted from activities competitive with Bft. These restrictions include those regarding Competing Businesses, as defined in the Franchise Agreement.

Specifically, Bft developers and their owners must comply with all Noncompetition Restrictions detailed in the Franchise Agreements. Furthermore, for two years after the agreement expires or terminates, or after a developer or owner assigns their interest, they cannot engage in any Competing Business within the Development Area, within 10 miles outside the Development Area, or within a 10-mile radius of any open or developing Bft studio.

This non-compete extends to owning, maintaining, being employed by, lending money to, leasing space to, providing services to, or having any interest in a Competing Business. This comprehensive restriction aims to protect Bft's market and business model by preventing developers and their owners from leveraging their knowledge and resources gained through the Bft franchise to benefit a competing entity.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.