What does the Additional Funds estimate assume regarding music licensing for a Bft franchise?

According to Bft's 2025 Franchise Disclosure Document, the estimate for additional funds includes an assumption about how franchisees handle music licensing. Specifically, the estimate assumes that franchisees will directly clear music rights with ASCAP, BMI, SESAC, and GMR. This means Bft expects franchisees to negotiate and pay licensing fees directly to these performing rights organizations.

This approach excludes playing music in the studio from any other performing rights organizations. If a franchisee chooses to obtain music clearances from an approved vendor instead of directly clearing the rights, they may incur higher prices than if they paid the performing rights organizations directly.

For a prospective Bft franchisee, this means they should budget for music licensing fees and understand the different options for securing music rights. They should also be aware that using an approved vendor for music clearances could increase their costs compared to direct payments. It is important to factor in these potential cost differences when planning the studio's budget.