Is the $28,000 sourcing fee for Bft refundable?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS SOURCING FEE ADDENDUM | (this "Sourcing Fee Addendum") is made and entered into by |
|---|---|
| and between | BFT FRANCHISE SPV, LLC, a Delaware limited liability company with its principal business |
| address at 17877 Von Karman Ave., | Suite 100 Irvine, CA 92614 ("Franchisor"), and |
| , whose principal business address is | |
| ("Franchisee"). | |
| 1. , 20 Sourcing Fee Addendum. This Sourcing Fee the Franchise Agreement. Terms not otherwise defined in this Sourcing Fee defined in the Franchise Agreement. This Sourcing Fee Agreement. | Background. Franchisor and Franchisee are parties to that certain Franchise Agreement dated (the "Franchise Agreement") that has been signed concurrently with the signing of this Addendum supersedes any inconsistent or conflicting provisions of Addendum have the meanings as Addendum is annexed to and forms part of the Franchise |
| 2. Agreement). ef |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the sourcing fee is non-refundable. Specifically, the document states that franchisees may owe a commission to a third-party franchise broker based on a previous introduction to Bft. To that end, the franchisee must pay a $28,000 sourcing fee upon execution of the Franchise Agreement. This fee is in addition to the initial franchise fee.
This means that if you are required to pay a sourcing fee to Bft, you will not be able to get that money back under any circumstances. This is different from the franchise fee, which may be refundable in some situations, so it's important to understand the distinction.
Prospective franchisees should carefully consider this non-refundable fee and factor it into their overall investment decision. It would be prudent to clarify with Bft under what specific circumstances this sourcing fee is applied and whether there is any room for negotiation.