During and after the term of the agreement, what are franchisees and their owners obligated to do regarding Bft's 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.
Upon Franchisor's request, Franchisee shall require the Studio's employees and any independent contractors to execute a nondisclosure and non-competition agreement in a form satisfactory to Franchisor.
Franchisee shall not acquire any interest in the Confidential Information other than the right
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees and their owners have specific obligations regarding confidential information both during and after the franchise term. Franchisees must ensure that they, along with their spouses, immediate family, affiliates, and assigns, process, retain, use, collect, and disclose confidential information strictly for the development and operation of the Bft studio, adhering to privacy policies and system standards. This use must align with the instructions provided and not for any other purpose.
During the franchise term and afterward, franchisees must keep the confidential information secure and not disclose, sell, distribute, or trade it to anyone except employees, independent contractors, and representatives who need the information to assist in the studio's operation, as per the agreement. Unauthorized copies are prohibited, and franchisees must implement safeguards to prevent unauthorized use or disclosure. These safeguards include security measures, access restrictions, and contractual obligations for those with access to protect the information, ensuring these measures are no less protective than the agreement's terms. Upon Bft's request, franchisees must either destroy or return any confidential information.
Upon termination or expiration of the franchise agreement, all rights to use Bft's confidential information cease immediately. Franchisees must stop using the confidential information, system, and any other intellectual property of Bft and its affiliates. If a franchisee learns of any unauthorized use of confidential information, they must promptly notify Bft. Additionally, any new concepts, processes, or improvements developed by the franchisee related to Bft studios or the system become the sole property of Bft, requiring the franchisee to notify Bft and provide all necessary information and documentation to formalize the transfer of ownership.