Does Bft provide compensation to the franchisee if it operates or licenses others to operate Bft studios outside the Designated Territory?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
1.4 Rights Reserved to Franchisor. For the avoidance of doubt, Franchisor reserves for itself and its affiliates all rights not expressly granted to Franchisee in this Agreement and the right to do all things that Franchisor does not expressly agree in this Agreement not to do, in each case, without regard to proximity to the Studio and without any compensation to Franchisee, and on such terms and conditions as Franchisor deems appropriate. Without limitation, Franchisor and its affiliates may, themselves or through authorized third-parties (and Franchisee is not granted the right to): (a) open and operate, and license third-parties the right to open or operate, other BFT Studios utilizing the Marks and System outside the Designated Territory;
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft reserves specific rights regarding the operation and licensing of Bft studios outside a franchisee's designated territory, without providing compensation to the franchisee. Bft explicitly states that it retains the right to open, operate, and license others to operate Bft studios outside the Designated Territory.
This means that a Bft franchisee is not entitled to any compensation if Bft or its affiliates choose to establish or license Bft studios in areas outside of the franchisee's exclusive territory. The franchisee's rights are limited to the exclusivity granted within their Designated Territory, assuming they remain in compliance with the Franchise Agreement.
This lack of compensation for external operations is a standard practice in many franchise systems, where the franchisor retains broad rights to expand the brand as they see fit. A prospective Bft franchisee should consider this when evaluating the potential for market saturation and competition from other Bft locations, even if those locations are outside of their immediate territory. Understanding the scope of the Designated Territory and the potential for Bft to operate nearby without compensation is crucial for assessing the long-term viability and profitability of the franchise.