Can Bft Franchisor disclose a franchisee's new concept to other franchisees?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that any new concept, process or improvement in the operation or promotion of the Studio developed by or on behalf of Franchisee that relates to or enhances BFT Studios or the System, or any aspect of Franchisor's business, shall be the sole property of Franchisor, and Franchisee shall promptly notify Franchisor and shall provide Franchisor with all necessary information and execute all necessary documents to memorialize said ownership, or, if necessary, Franchisee's assignment of such ownership to Franchisor, without compensation.
Franchisee acknowledges that Franchisor may utilize or disclose such information to other Franchisees.
- D.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, any new concept, process, or improvement developed by a franchisee that relates to Bft Studios or the System becomes the sole property of Bft. The franchisee is required to promptly notify Bft of such developments and provide all necessary information and documentation to formalize Bft's ownership.
Importantly, Bft retains the right to utilize or disclose this information to other franchisees within the Bft system. This means that if a franchisee develops a successful innovation, Bft can share it with the entire franchise network without compensating the originating franchisee.
This clause encourages franchisees to share their innovations with Bft, as Bft can then disseminate these improvements across the franchise system. However, it also means that franchisees may not directly benefit financially from their own innovations beyond their individual studio's performance, as Bft can share these ideas with other franchisees.