What specific actions are Bft franchisees prohibited from doing with Confidential Information?
Bft Franchise · 2025 FDDAnswer 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 face several restrictions regarding the use and handling of the company's Confidential Information. Franchisees must limit their use, retention, collection, and disclosure of Confidential Information strictly to what is necessary for operating their Bft studio in accordance with the franchise agreement. Any other use is prohibited. They must also adhere to Bft's privacy policies and System Standards when handling such information.
Bft franchisees are specifically prohibited from disclosing, selling, distributing, or trading Confidential Information to anyone outside of their employees, independent contractors, and representatives who need the information to assist in the studio's operation. Unauthorized copying of Confidential Information is also forbidden. Franchisees are required to implement and maintain security measures to prevent unauthorized use or disclosure, including establishing security protocols, limiting disclosure to essential personnel, and ensuring that those with access are bound by contractual obligations to protect the information.
Furthermore, franchisees must notify Bft immediately if they become aware of any security breaches or unauthorized access to Personal Information and cooperate with any investigations. They must also follow Bft's instructions regarding corrective actions and public statements related to the breach. Overall, these restrictions aim to protect Bft's proprietary information and maintain the integrity of the franchise system.