factual

During the term of the Bft franchise agreement, are franchisees prohibited from diverting customers to a Competing Business?

Bft Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee further agrees that, during the Term, the Restricted Parties shall not divert, or attempt to divert, any customer or prospective customer to a Competing Business in any manner.

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

What This Means (2025 FDD)

According to Bft's 2025 Franchise Disclosure Document, franchisees are prohibited from diverting customers to a Competing Business during the term of the franchise agreement. Specifically, the FDD states that the franchisee agrees they will not divert, or attempt to divert, any customer or prospective customer to a Competing Business in any manner during the term of the agreement.

This means that while operating a Bft franchise, franchisees must not try to attract Bft customers to any competing fitness or exercise business. This restriction is in place to protect Bft's customer base and maintain the integrity of the Bft brand. A "Competing Business" includes any fitness or exercise business (except a business operated pursuant to a franchise agreement with Bft), any fitness or exercise marketing or consulting business, any business offering products of a similar nature to those of the Studio, or in any business or entity which franchises, licenses or otherwise grants to others the right to operate such aforementioned businesses.

This non-diversion clause is a standard provision in franchise agreements. It ensures that franchisees focus on growing their Bft business and do not use their position within the Bft network to benefit a competing venture. Failing to comply with this restriction could result in a breach of the franchise agreement and potential legal consequences.

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.