If a Bft franchisee develops a new technique related to the franchise, is Bft obligated to compensate the franchisee for its use?
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.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 55–56)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, any new concept, process, or improvement related to the Bft studio's operation or promotion developed by a franchisee 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.
This means that if a Bft franchisee creates a new exercise technique, marketing strategy, or operational improvement that enhances the Bft system, Bft will own it. The franchisee must inform Bft about the innovation and transfer ownership to Bft.
Importantly, the FDD states that the franchisee will not receive any compensation for these developments. Bft may then use or share this information with other franchisees in the system. This clause encourages franchisees to contribute to the system's improvement while ensuring that Bft maintains control over its intellectual property and can disseminate best practices across the franchise network without having to pay royalties or fees to the originating franchisee.