Does the Bft franchise agreement prohibit franchisees from undertaking any act that would subject the Marks to ridicule?
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 Bft's 2025 Franchise Disclosure Document, franchisees are prohibited from undertaking any action that would subject the Marks to ridicule. Specifically, the franchise agreement states that franchisees must not take any action that would subject the Marks to ridicule, scandal, reproach, scorn, or indignity. This requirement extends not only to the franchisee but also to their current and former owners, officers, directors, principals, agents, partners, employees, representatives, attorneys, spouses, affiliates, successors, and assigns.
This provision aims to protect the brand's reputation and goodwill. By preventing franchisees and related parties from engaging in actions that could harm the Marks, Bft seeks to maintain a consistent and positive image. This is a common clause in franchise agreements, as franchisors heavily rely on their trademarks and brand recognition for success.
For a prospective Bft franchisee, this means being mindful of all conduct that could reflect negatively on the brand. This includes not only business operations but also personal behavior that could be associated with the franchise. Franchisees should ensure that all individuals associated with their business are aware of and adhere to this requirement to avoid potential breaches of the franchise agreement. This clause also prevents franchisees from making untrue or derogatory statements concerning Bft and its affiliates, as well as their present and former officers, employees, shareholders, directors, agents, attorneys, servants, representatives, successors and assigns.
In addition to protecting the Marks from ridicule, the agreement also prohibits actions that could negatively impact the goodwill of Bft or its affiliates, the Marks, other components of the System, or any other brands owned or controlled by Bft or its affiliates. Furthermore, franchisees must not engage in any act of moral turpitude, including verbal, physical, or sexual harassment towards any other person. These comprehensive restrictions underscore the importance Bft places on maintaining a positive and ethical brand image.