Is the $40,000 sourcing fee for Bft due in addition to other fees?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 | |
| ("Developer"). | |
| 1. , 20 this Sourcing Fee Unit Agreement. | Background. Developer and Franchisor are parties to that certain Multi-Unit Agreement dated (the "Multi-Unit Agreement") that has been signed concurrently with the signing of Addendum. This Sourcing Fee Addendum supersedes any inconsistent or conflicting provisions of the Multi-Unit Agreement. Terms not otherwise defined in this Sourcing Fee Addendum have the meanings as defined in the Multi-Unit Agreement. This Sourcing Fee Addendum is annexed to and forms part of the Multi |
| 2. | Sourcing Fee. Developer (and/or its a |
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 indeed in addition to other fees. Specifically, if a developer is acquiring development rights under a Multi-Unit Agreement to open two additional Bft studios, they will owe a sourcing fee of $40,000. This $40,000 is explicitly stated as being in addition to the Development Fee. This means that a developer should budget for both the sourcing fee and the development fee when planning to expand with multiple units.
This sourcing fee is non-refundable and is due upon the execution of the Multi-Unit Agreement. It compensates a third-party franchise broker for introducing the developer to Bft or its affiliates. This arrangement is documented in a Sourcing Fee Addendum to the Multi-Unit Agreement, ensuring transparency and clarity regarding the fee's purpose and payment terms.
Prospective Bft developers should carefully review the Multi-Unit Agreement and its Sourcing Fee Addendum to fully understand the financial obligations associated with expanding their franchise operations. Understanding the fees and their payment schedules is crucial for effective financial planning and management.