After the Bft franchise agreement terminates, what specific activities are franchisees prohibited from doing with a competing business within the 10-mile radius?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Prohibition on Competing Businesses. For two (2) years after the expiration or termination (by Franchisor or by Franchisee for any reason) of this Agreement or after Franchisee has assigned its interest in this Agreement, neither Franchisee nor any other Restricted Party will own, maintain, engage in, be employed as an officer, director, or principal of, lend money to, extend credit to, lease/sublease space to, or have any interest in or involvement with, any other Competing Business: (i) at the Authorized Location; or (ii) within a ten (10)-mile radius of (a) the Authorized Location, or (b) any other BFT Studio owned by Franchisor, its affiliates, or any franchisee, which is open, under lease or otherwise under development as of the date this Agreement expires or is terminated.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, for two years after the franchise agreement terminates, franchisees and related parties face specific restrictions regarding competing businesses within a 10-mile radius. These restrictions apply regardless of whether the termination is initiated by Bft or the franchisee.
The franchisee is prohibited from owning, maintaining, or engaging in any capacity as an officer, director, or principal of a competing business. This extends to financial involvement, such as lending money or extending credit to a competing business, as well as leasing or subleasing space to such a business.
The restrictions apply to the Bft studio's authorized location and any other Bft studio owned by the franchisor, its affiliates, or any franchisee within a 10-mile radius. This includes studios that are open, under lease, or otherwise under development when the franchise agreement expires or is terminated. These non-compete terms are typical in franchising to protect the brand and market share of the franchisor and other franchisees.