Does the Bft franchise agreement prevent franchisees from making derogatory statements about Franchisor's affiliates?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.6 Non-Disparagement. Franchisee agrees that it will not (and to use its best efforts to cause its current and former owners, officers, directors, principals, agents, partners, employees, representatives, attorneys, spouses, affiliates, successors and assigns not to) (i) make any untrue or derogatory statements concerning Franchisor and its affiliates, as well as their present and former officers, employees, shareholders, directors, agents, attorneys, servants, representatives, successors and assigns; or (ii) undertake any act which would (a) subject the Marks to ridicule, scandal, reproach, scorn, or indignity, (b) negatively impact the goodwill of Franchisor or its affiliates, the Marks, other components of the System, or any other brands owned or controlled by Franchisor or its affiliates, or (c) constitute an act of moral turpitude (including, without limitation, verbal, physical, or sexual harassment towards any other person).
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, franchisees are prohibited from making untrue or derogatory statements concerning Bft and its affiliates. This extends not only to the franchisor itself but also to its present and former officers, employees, shareholders, directors, agents, attorneys, servants, representatives, successors, and assigns.
This non-disparagement clause also prevents franchisees from undertaking any actions that could subject Bft's trademarks to ridicule, scandal, or scorn, or negatively impact the goodwill of Bft, its affiliates, the trademarks, or any other brands owned or controlled by Bft or its affiliates. Additionally, franchisees must avoid any actions that constitute moral turpitude, including harassment.
This provision is fairly standard in franchising, as franchisors want to protect their brand's reputation. For a prospective Bft franchisee, this means being mindful of public statements and actions related to the franchise. Failure to comply with this clause could result in legal action or termination of the franchise agreement.