factual

Does the Bft Franchise Agreement grant franchisees the right to engage in activities outlined in the preceding paragraph regarding internet sales or alternative channels of commerce?

Bft Franchise · 2025 FDD

Answer from 2025 FDD Document

Neither the Franchise Agreement nor the Multi-Unit Agreement grants you any right to engage in any of the activities outlined in the preceding paragraph, or to share in any of the proceeds received by us, our parent/affiliates or any third party from these activities, unless we otherwise agree in writing. Further, we have no obligation to provide you any compensation for soliciting or accepting orders (via alternate channels of distribution) within your Designated Territory.

Source: Item 12 — TERRITORY (FDD pages 50–54)

What This Means (2025 FDD)

According to the 2025 Bft Franchise Disclosure Document, the Franchise Agreement does not grant franchisees the right to engage in activities related to internet sales or alternative channels of commerce as outlined in the preceding paragraph. Additionally, franchisees are not entitled to a share of any proceeds Bft, its parent/affiliates, or any third party receives from these activities, unless Bft agrees otherwise in writing. Bft also has no obligation to compensate franchisees for soliciting or accepting orders through alternate distribution channels within their Designated Territory. This means that Bft retains control over internet sales and alternative channels of commerce, and franchisees have limited rights in these areas.

Bft may sell products and services to members regardless of location, even if those products and services are similar to what franchisees sell. Bft may also use the internet or alternative channels to sell products and services branded with Bft's marks. Franchisees are only allowed to sell products and services from their Studio's Authorized Location and may only use the internet or alternative channels of commerce to offer or sell products and services, as permitted by Bft, in order to register members for classes. Bft retains the right to approve or disapprove of any advertising and promotional materials, including those used on the internet.

Franchisees are permitted to obtain members over the internet, provided their internet presence and content comply with the requirements of the Franchise Agreement. Bft may also "occupy" any social media websites/pages and be the sole provider of information regarding the Studio on such websites/pages. At Bft's request, franchisees must promptly modify or remove any online communication pertaining to the Studio that does not comply with the Franchise Agreement or the Learning Management System. This indicates that Bft maintains significant control over the brand's online presence and marketing efforts, which could limit a franchisee's ability to independently promote their studio online.

These stipulations mean that a Bft franchisee's ability to leverage online sales and marketing is heavily controlled by the franchisor. A prospective franchisee should clarify the specific restrictions and approval processes related to online activities to fully understand the limitations and expectations.

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.