What geographic area is the Bft franchisee restricted to when searching for an acceptable location if the Authorized Location is not identified on Exhibit 1?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
1.2 Site Approval Process. If the Authorized Location is not identified on Exhibit 1 when Franchisee signs this Agreement, Franchisee must search for acceptable locations for the Studio within the area
identified on Exhibit 1 (the "Designated Market Area") and secure Franchisor's acceptance of the proposed location within 90 days after the Effective Date (the "Site Acceptance Period"). The Designated Market Area has been identified for the sole purpose of facilitating the orderly development of the market, and not for purposes of granting Franchisee any exclusivity or protection within the Designated Market Area. Franchisee acknowledges and agrees that Franchisor does not guarantee that Franchisee will find an acceptable site within the Designated Market Area or during the Site Acceptance Period.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, if the Authorized Location is not identified on Exhibit 1 when the Franchise Agreement is signed, the franchisee must search for acceptable locations within the area identified on Exhibit 1, which is referred to as the "Designated Market Area." The franchisee has 90 days after the Effective Date of the agreement, known as the "Site Acceptance Period," to secure Bft's acceptance of a proposed location.
Bft clarifies that the Designated Market Area is specified to facilitate the orderly development of the market and does not grant the franchisee any exclusivity or protection within that area. The franchisee acknowledges that Bft does not guarantee the franchisee will find an acceptable site within the Designated Market Area or during the Site Acceptance Period.
This means a prospective Bft franchisee needs to be aware that their search for a location is initially limited to the Designated Market Area specified in Exhibit 1. However, finding a suitable location within this area is not guaranteed, and the franchisee bears the risk of not securing a site within the given timeframe. Furthermore, the franchisee should understand that the Designated Market Area does not provide any exclusive rights, meaning Bft can still establish other franchises or operate its own studios within the same area.