Does the Bft franchise agreement specify that the franchisee's obligations regarding Personal Information extend beyond the term of the franchise agreement?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee (and its Owners, if Franchisee is a legal entity) agrees that, during and after the Term, Franchisee will, and cause its spouses, immediate family members, affiliates, and assigns to: (i) process, retain, use, collect, and disclose Confidential Information strictly to the limited extent, and in such a manner, as necessary for the development and operation of the Studio in accordance with this Agreement, and not for any other purposes of any kind; (ii) process, retain, use, collect, and disclose Confidential Information strictly in accordance with the privacy policies and System Standards and Franchisee's and its representative's instructions; (iii) keep confidential and not disclose, sell, distribute, or trade Confidential Information to any person other than those of Franchisee's employees, independent contractors, and representatives who need to know such Confidential Information for the purpose of assisting Franchisee it is operation of the Studio in accordance with this Agreement; (iv) not make unauthorized copies of any portion of Confidential Information; (v) adopt and maintain administrative, physical, and technical safeguards to prevent unauthorized use or disclosure of any portion of Confidential Information, including by establishing reasonable security and access measures, restricting its disclosure to key personnel, and/or by requiring persons who have access to such Confidential Information to be bound by contractual obligations to protect such Confidential Information and preserve Franchisor's rights and controls in such Confidential Information, in each case that are no less protective or beneficial to Franchisor than the terms of this Agreement; and (vi) at Franchisor's request, destroy or return any portion of the Confidential Information.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, the franchisee's obligations regarding confidential information, which includes personal information, extend beyond the term of the franchise agreement. Specifically, the franchisee agrees that during and after the term, they will process, retain, use, collect, and disclose confidential information strictly to the limited extent necessary for the development and operation of the studio in accordance with the agreement. This obligation continues even after the franchise agreement ends.
This means that even after a Bft franchise agreement expires or is terminated, the franchisee must continue to protect the confidentiality of the information they obtained during the term of the agreement. This includes adhering to privacy policies, system standards, and any instructions provided by Bft. The franchisee must also ensure that confidential information is not disclosed to unauthorized parties and that appropriate safeguards are maintained to prevent unauthorized use or disclosure.
This extended obligation is a common practice in franchising to protect the franchisor's proprietary information and customer data. For a prospective Bft franchisee, this highlights the importance of understanding and adhering to the confidentiality obligations outlined in the franchise agreement, not only during the active term but also after the agreement concludes. Failure to comply with these obligations could result in legal action or other penalties.