If a Bft franchisee's owner ceases to be an owner, from what date is the non-compete calculated?

According to Bft's 2025 Franchise Disclosure Document, if an owner of a Bft franchise ceases to be an owner for any reason, the non-compete obligations are calculated as if the Franchise Agreement were terminated on the date the owner ceased to be an owner. This means the restrictions on competing with Bft begin from the date of ownership cessation.

Specifically, the former owner must comply with the non-compete provisions outlined in Section 13.1.B of the Franchise Agreement. These provisions likely include restrictions on involvement with competing businesses and franchising activities within certain geographic areas. The duration of these restrictions is typically two years, as indicated elsewhere in the document regarding non-compete clauses after the termination or expiration of the agreement.

For a prospective Bft franchisee, this clause highlights the importance of understanding the implications of ownership changes. If an owner exits the business, they are immediately subject to the non-compete, which could limit their future business activities. This is a standard practice in franchising to protect the brand and system from former owners using their knowledge to compete unfairly. Franchisees should carefully consider this when structuring ownership agreements and planning for potential ownership transitions.