Under what conditions does Bft reserve the right to modify the boundaries of the Designated Territory?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor will have the right to modify the boundaries of the Designated Territory if (a) Franchisee relocates its Studio as permitted under this Agreement, or (b) at the time of any request for grant of a successor franchise or proposed Transfer (defined below), the population of the Designated Territory is over 50,000, with said modifications designed to afford Franchisee with a territory that contains a population that is similar to that contained within the original Designated Territory.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft retains the right to modify the boundaries of a franchisee's designated territory under specific circumstances. These circumstances include if the franchisee relocates their studio as permitted by the Franchise Agreement. Additionally, Bft can modify the territory boundaries if, at the time of a request for a successor franchise or a proposed transfer of the franchise, the population within the designated territory exceeds 50,000.
In the event of a population increase above 50,000, Bft will modify the designated territory to ensure that the franchisee's territory contains a population similar to that of the original designated territory. This adjustment aims to maintain a balanced market size for the franchisee.
This provision ensures that Bft can adapt the territory to changing demographic conditions or operational changes, which could impact the franchisee's business. It is important for prospective franchisees to understand these conditions, as they could affect the size and potential customer base of their Bft studio over time.