What geographic areas are covered by the Noncompetition Restrictions for Bft after the Development Agreement expires or is terminated?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Noncompetition Restrictions. Developer acknowledges that, under each Franchise Agreement executed pursuant to this Agreement, the Restricted Parties (as defined in the Franchise Agreements) are subject to certain restrictions and covenants regarding activities which are deemed competitive with those of Franchisor, including restrictions regarding Competing Businesses, as that term is defined in the Franchise Agreement (the "Noncompetition Restrictions"). Developer acknowledges and agrees that it and its owners are subject to, and will comply with, all of the Noncompetition Restrictions described in the Franchise Agreements, each of which is adopted herein as though copied in its entirety. Developer further agrees that, in addition to any obligations with respect to Noncompetition Restrictions under the Franchise Agreements, for two (2) years after the expiration or sooner termination of this Agreement, or if applicable, after Developer or an owner of Developer has assigned its interest in this Agreement or in Developer (as applicable), the Restricted Parties or the transferring owner (as applicable) shall not own, maintain, engage in, be employed as an officer, director, or principal of, lend money to, extend credit to, lease/sublease space to, provide services to, or have any interest in or involvement with, any other Competing Business: (a) within the Development Area; (b) within 10 miles outside the boundaries of the Development Area, or (c) within a 10-mile radius of any Studio that is open, under lease or otherwise under development as of the date this Agreement expires or is terminated or, if applicable, as to a transferring owner, the date of such transfer.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, after the Development Agreement expires or is terminated, the noncompetition restrictions apply for two years. These restrictions prevent the developer and related parties from engaging in any Competing Business within specific geographic areas.
The restricted areas include (a) the Development Area itself, meaning the specific territory granted to the developer for establishing Bft studios; (b) an area extending 10 miles outside the boundaries of the Development Area, providing a buffer zone around the developer's primary territory; and (c) a 10-mile radius around any Bft studio that is open, under lease, or otherwise under development as of the date the Development Agreement expires or is terminated. This last restriction also applies to transferring owners from the date of such transfer.
This means that a former Bft developer is significantly limited in their ability to operate or be involved with a competing fitness business near their former Bft territory. The restrictions aim to protect Bft's market share and prevent developers from using their knowledge gained during the franchise agreement to directly compete with Bft. Prospective developers should carefully consider these limitations and how they might impact their future business ventures after the agreement ends.