For how long after the expiration or termination of the Bft Development Agreement are the Restricted Parties subject to Noncompetition Restrictions?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Restricted Parties are subject to noncompetition restrictions for two years after the expiration or termination of the Development Agreement. This restriction also applies if the Developer or an owner assigns their interest in the Agreement or in the Developer entity.
During this two-year period, the Restricted Parties are prohibited from owning, maintaining, engaging in, or being employed by a Competing Business. This includes acting as an officer, director, or principal, lending money to, extending credit to, leasing space to, providing services to, or having any interest in or involvement with a Competing Business.
The geographic scope of these restrictions includes (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 Bft studio that is open, under lease, or otherwise under development as of the date the Agreement expires or is terminated, or the date of transfer if applicable.