Does the Bft Franchise Agreement include exhibits related to designated territories?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
See Exhibit A for BFT Franchise SPV, LLC's registered agents authorized to receive service of process.
I have received a disclosure document dated March 14, 2025, that included the following Exhibits:
Exhibit A Form of Franchise Agreement and Exhibits Exhibit H State Specific Addenda Exhibit B List of State Agents for Service of Process and State Administrators Exhibit I List of Franchisees Exhibit C Financial Statements Exhibit J List of Franchisees That Left System Exhibit D Guaranty of Performance Exhibit K Form of Multi-Unit Agreement Exhibit E Statement of Prospective Franchisee Exhibit L-1 Form of Sourcing Fee Addendum (Franchise Agreement) Exhibit F Table of Contents of Manual Exhibit L-2 Form of Sourcing Fee Addendum (Multi-Unit Agreement) Exhibit G Form of General Release Exhibit M Receipts
Source: Item 22 — CONTRACTS (FDD page 79)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Exhibit A includes the Form of Franchise Agreement and Exhibits. The Franchise Agreement outlines the franchisee's rights within a designated territory. Specifically, the franchisee is granted the non-exclusive right and license to operate a single Bft studio at a location identified on Exhibit 1 or as determined by the franchisor. If the Authorized Location is not identified on Exhibit 1 when the Franchise Agreement is signed, the franchisee must search for acceptable locations within the Designated Market Area identified on Exhibit 1.
Bft's agreement also states that once the franchisee acknowledges the Authorized Location and Designated Territory, they must obtain lawful possession of the location and open their studio. Bft retains the right to modify the boundaries of the Designated Territory if the franchisee relocates the studio or if the population of the Designated Territory exceeds 50,000 at the time of a request for a successor franchise or transfer.
Bft also provides exclusivity within the Designated Territory, preventing the franchisor from operating or licensing a third party to operate a Bft studio within that territory, as long as the franchisee complies with the agreement. However, Bft reserves the right to operate or license others outside the Designated Territory and through alternative channels of distribution, including internet sales and non-traditional sites such as gyms, cruise ships, and airports.