What is the radius around a Bft studio where a franchisee is prohibited from operating a competing business after the franchise agreement terminates?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. After the Term of this Agreement. Franchisee agrees that, unless (and then only to the extent) prohibited by Applicable Law, Franchisee, the Restricted Parties, and its owners will comply with the following:
- (2) Prohibition on Competing Businesses. For two (2) years after the expiration or termination (by Franchisor or by Franchisee for any reason) of this Agreement or after Franchisee has assigned its interest in this Agreement, neither Franchisee nor any other Restricted Party will own, maintain, engage in, be employed as an officer, director, or principal of, lend money to, extend credit to, lease/sublease space to, or have any interest in or involvement with, any other Competing Business: (i) at the Authorized Location; or (ii) within a ten (10)-mile radius of (a) the Authorized Location, or (b) any other BFT Studio owned by Franchisor, its affiliates, or any franchisee, which is open, under lease or otherwise under development as of the date this Agreement expires or is terminated.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, a franchisee is restricted from involvement with any competing business for two years after the franchise agreement expires or terminates. This restriction applies to owning, maintaining, engaging in, or being employed by a competing business.
The geographic scope of this restriction includes the Authorized Location of the Bft studio and extends to a ten-mile radius around it. Additionally, the restriction covers a ten-mile radius around any other Bft studio owned by the franchisor, its affiliates, or any franchisee, provided that the studio is open, under lease, or otherwise under development as of the date the franchise agreement expires or is terminated.
This non-compete clause ensures that franchisees do not directly leverage the Bft system and brand recognition to compete against the franchise shortly after leaving the system. Prospective franchisees should consider this restriction carefully, as it could limit their business opportunities in the fitness industry within a significant radius after the franchise agreement ends. It is also important to note that these restrictions apply not only to the franchisee but also to any 'Restricted Party,' which may include owners or other involved parties.