What happens if an owner of a Bft franchise ceases to be an owner; are they still subject to the non-compete?

According to Bft's 2025 Franchise Disclosure Document, if an owner of a Bft franchise ceases to be an owner for any reason, that former owner must comply with the non-compete provisions outlined in Section 13.1.B of the franchise agreement. This compliance is enforced as if the franchise agreement was terminated on the date the individual ceased being an owner.

Section 13.1.B includes two key prohibitions. First, for two years after the termination or expiration of the franchise agreement, the former owner cannot be involved with any business that competes with Bft by offering or granting licenses or franchises, or establishing joint ventures for a Competing Business, in any location where Bft has offered or sold franchises as of the termination date. Second, for the same two-year period, the former owner is prohibited from owning, maintaining, engaging in, or being involved with any Competing Business at the Authorized Location or within a ten-mile radius of the Authorized Location or any other Bft studio owned by Bft, its affiliates, or any franchisee that is open, under lease, or under development at the time of termination.

This non-compete obligation ensures that former owners do not leverage their knowledge and experience gained as a Bft franchisee to unfairly compete with the Bft system after they leave. Prospective franchisees should carefully consider these restrictions and how they might impact their future business opportunities if they decide to exit the Bft franchise system or relinquish their ownership stake.