After the term of my Bft Franchise Agreement, what are my obligations regarding the use of 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 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 55–56)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, even after the franchise term ends, franchisees have specific obligations regarding confidential information. Franchisees must ensure that they, along with their owners, spouses, immediate family, affiliates, and assigns, adhere to strict guidelines. They are required to process, retain, use, collect, and disclose confidential information only to the extent necessary for operating the Bft studio as per the agreement. Any other use is prohibited.
Specifically, franchisees must follow privacy policies, system standards, and instructions regarding confidential information. Disclosure, sale, distribution, or trading of confidential information is restricted to employees, independent contractors, and representatives who need it for studio operations. Unauthorized copying is forbidden, and franchisees must maintain safeguards against unauthorized use or disclosure. These safeguards should 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 terms of the franchise agreement.
Upon the termination or expiration of the Bft Franchise Agreement, franchisees must also cease operating the studio and immediately remove all signs, letterheads, labels, or any items that link the franchisee to Bft. They must stop using Bft's trademarks, confidential information, the system, and any other intellectual property. Franchisees are also obligated to terminate all advertising and promotional efforts that suggest they are an authorized Bft franchisee. At Bft's request, franchisees must either destroy or return any portion of the confidential information.