Regarding advertising for a Bft studio, what are some examples of Applicable Laws that a franchisee must comply with?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
To promote a consistent consumer experience, and to maximize the value of the products and services Studios offer, Franchisor may, subject to Applicable Laws, require fixed maximum or minimum prices for any products or services offered by the System and Franchisee.
For any product or service for which Franchisor does not impose a maximum or minimum price, Franchisor may require Franchisee to comply with an advertising policy adopted by Franchisor which will prohibit Franchisee from advertising any price for a product or service that is different than Franchisor's suggested retail price.
To determine whether Franchisee is complying with this Agreement and the System Standards, Franchisor reserves the right, at any reasonable time and without prior notice, and subject to Applicable Laws, to inspect and assess all aspects of the Studio's appearance and operations, including the right to: (1) inspect and examine the Studio premises, fitness equipment, facilities and operation of the Studio in person; (2) interview Franchisee and Franchisee's employees and any independent contractors; (3) interview members and customers of and suppliers to the Studio and any other person with whom Franchisee does business; (4) confer with members and staff of government agencies with authority over Franchisee about matters relevant to the Studio; and (5) use "mystery shoppers," who may pose as customers.
Franchisee is responsible for complying with all Applicable Laws in connection with the use of the surveillance camera.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
Based on the 2025 FDD, Bft franchisees must adhere to 'Applicable Laws' when advertising their studios. While the document does not explicitly list specific advertising laws, it mentions that Bft may require franchisees to follow fixed maximum or minimum prices for their services, subject to these Applicable Laws. This suggests franchisees need to be aware of laws related to pricing and advertising standards.
Additionally, Bft may implement an advertising policy that franchisees must comply with, especially if Bft does not set maximum or minimum prices for certain products or services. This policy could restrict franchisees from advertising prices that differ from Bft's suggested retail price. Therefore, franchisees must stay informed about Bft's advertising policies and ensure their advertising aligns with these guidelines and all relevant legal requirements.
Furthermore, Bft retains the right to inspect and assess all aspects of a studio's appearance and operations, subject to Applicable Laws. This includes the right to interview franchisees and their employees, as well as customers and suppliers, to ensure compliance. Franchisees are also responsible for complying with all Applicable Laws related to the use of surveillance cameras at their studios, and they must indemnify Bft against any claims arising from breaches of privacy related to these cameras. Therefore, franchisees should seek legal counsel to understand and comply with all relevant advertising, privacy, and operational laws to avoid potential legal issues and maintain a positive brand image.