Does the restriction on operating a competing business after termination of the Bft franchise agreement apply to Bft studios that are under lease but not yet open?

According to the 2025 Bft Franchise Disclosure Document, the restriction on operating a competing business after the termination of the franchise agreement does apply to Bft studios that are under lease or otherwise under development, even if they are not yet open. Specifically, for two years after the franchise agreement terminates, a franchisee cannot be involved with any competing business within a 10-mile radius of any other Bft studio owned by Bft, its affiliates, or any franchisee, which is open, under lease, or otherwise under development as of the date the agreement expires or is terminated.

This means that if a franchisee's agreement is terminated, they cannot open a competing fitness studio within a 10-mile radius of an existing Bft studio or one that is in the process of being developed. This restriction applies regardless of whether the other Bft studio is already open to the public or is still in the development phase, such as being under lease. The restriction aims to protect Bft's market presence and prevent former franchisees from directly competing with existing or planned Bft locations.

For a prospective franchisee, this clause highlights the importance of understanding the competitive landscape and potential future Bft locations when choosing a site. It also emphasizes the long-term implications of the non-compete agreement, which extends beyond the active operation of the franchise and can significantly limit business opportunities for two years after the agreement ends. Franchisees should carefully consider these restrictions and their potential impact on their future business ventures.