factual

What safeguards must a Bft franchisee adopt and maintain to prevent unauthorized use or disclosure of Confidential Information?

Bft Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee (and its Owners, if Franchisee is a legal entity) agrees that, during and after the Term, Franchisee will, and cause its spouses, immediate family members, affiliates, and assigns to: (i) process, retain, use, collect, and disclose Confidential Information strictly to the limited extent, and in such a manner, as necessary for the development and operation of the Studio in accordance with this Agreement, and not for any other purposes of any kind; (ii) process, retain, use, collect, and disclose Confidential Information strictly in accordance with the privacy policies and System Standards and Franchisee's and its representative's instructions; (iii) keep confidential and not disclose, sell, distribute, or trade Confidential Information to any person other than those of Franchisee's employees, independent contractors, and representatives who need to know such Confidential Information for the purpose of assisting Franchisee it is operation of the Studio in accordance with this Agreement; (iv) not make unauthorized copies of any portion of Confidential Information; (v) adopt and maintain administrative, physical, and technical safeguards to prevent unauthorized use or disclosure of any portion of Confidential Information, including by establishing reasonable security and access measures, restricting its disclosure to key personnel, and/or by requiring persons who have access to such Confidential Information to be bound by contractual obligations to protect such Confidential Information and preserve Franchisor's rights and controls in such Confidential Information, in each case that are no less protective or beneficial to Franchisor than the terms of this Agreement; and (vi) at Franchisor's request, destroy or return any portion of the Confidential Information.

Source: Item 23 — RECEIPTS (FDD pages 79–265)

What This Means (2025 FDD)

According to Bft's 2025 Franchise Disclosure Document, franchisees must adopt and maintain specific safeguards to protect confidential information. These safeguards include administrative, physical, and technical measures designed to prevent unauthorized use or disclosure. Franchisees are required to establish reasonable security and access measures, restricting the disclosure of confidential information to key personnel.

Furthermore, Bft franchisees must ensure that individuals with access to confidential information are bound by contractual obligations. These obligations are designed to protect the confidential information and preserve Bft's rights and controls. The protective measures must be no less beneficial to Bft than the terms outlined in the franchise agreement itself.

In practical terms, this means a Bft franchisee needs to implement a comprehensive security protocol. This includes controlling physical access to sensitive data, using secure IT systems, and having legally binding agreements with employees and contractors. These measures aim to minimize the risk of confidential information being leaked or misused, which could harm Bft's competitive advantage and reputation.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.