Does Bft grant franchisees an exclusive territory?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
intenance, repairs, upgrades or updates, and any such obligations would be those of the software licensors.
ITEM 12 TERRITORY
Franchise Agreement
Authorized Location
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
You will operate your Studio at the Authorized Location. Once you have identified your Authorized Location and we accept the proposed site, we will designate the Designated Territory around the Authorized Location within which you will have certain protected rights.
You will not be permitted to relocate your Studio without our prior written approval, which may be withheld in our discretion. You will be assessed a relocation fee of $5,000 at the time you submit the proposed location for your relocated Studio. Generally, we do not approve requests to relocate your Studio after a site selection has been made and you have opened for business unless (a) it is due to extreme or unusual events beyond your control, and (b) you are not in default of your Franchise Agreement. If we approve your relocation request, we retain the right
to approve your new site location in the same manner and under the same terms that are applied to your first site selection.
Designated Territory
Your Designated Territory will generally be an area with a population of at least 15,000 people, as published by the U.S. Census Bureau or other governmental agencies and commercial sources. However, the size and shape of your Designated Territory will vary from the territory granted to other franchisees based on the location and demographics surrounding your Studio. The boundaries of your Designated Territory may be described in terms of zip codes, streets, landmarks (both natural and man-made) or county lines, or otherwise delineated on a map.
As long as you are in compliance with your Franchise Agreement, we will not operate, or grant a license to a third-party to operate, during the term of your Franchise Agreement, a Studio located within the Designated Territory, subject to our reservation of rights below.
Source: Item 12 — TERRITORY (FDD pages 50–54)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory under either the standard Franchise Agreement or the Multi-Unit Agreement. This means a franchisee may face competition from other franchisees, outlets owned by Bft, or other channels of distribution and competitive brands controlled by Bft. However, Bft does grant a 'Designated Territory' around the Authorized Location, within which the franchisee has certain protected rights. For Multi-Unit Agreements, Bft provides a 'Development Area.'
The Designated Territory typically covers an area with a population of at least 15,000 people, as determined by the U.S. Census Bureau or other reliable sources. The size and shape of the Designated Territory can vary based on the location and demographics surrounding the studio and may be defined using zip codes, streets, landmarks, or county lines. As long as the franchisee complies with the Franchise Agreement, Bft will not operate or license a third party to operate a studio within the Designated Territory. However, this is subject to certain reserved rights.
Bft and its affiliates retain the right to conduct various activities, including operating studios outside the Designated Territory, marketing similar products under different trademarks, and distributing approved products through alternative channels. Franchisees are generally not permitted to actively solicit clients outside their Designated Territory without prior written consent from Bft. Bft also reserves the right to sell products and services to members located anywhere, even if those products and services are similar to what franchisees offer. These reserved rights and limitations on territory are common in franchise agreements, allowing the franchisor flexibility in expanding the brand and exploring different market channels.
Bft may modify the size of the Designated Territory if a franchisee requests to relocate their studio and the relocation is approved. A relocation fee of $5,000 is assessed when the proposed location for the relocated studio is submitted. Additionally, at the time of any request for a successor franchise or a proposed assignment of the Franchise, Bft may move or modify the size of the Designated Territory if the population of the Designated Territory is over 15,000. Prospective franchisees should carefully consider these factors and discuss them with Bft to fully understand the scope and limitations of their territorial rights.