Can Bft adjust the amount of required Brand Development Fund Contributions?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 6 OTHER FEES
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 7% of Gross Sales generated by your Studio over the relevant reporting period 1 | Payable weekly via electronic funds transfer (“EFT”) based on the Gross Sales of your Studio during the preceding business week | You will be required to start paying your Royalty once your Studio begins collecting revenue from operations. We may collect your Royalty on a different interval (for example, monthly). |
| Contributions to Brand Development Fund 2 | Currently, 2% of Gross Sales 1 | Payable weekly around the same time and in the same manner as the Royalty | Your contributions (the “Fund Contributions”) to the Brand Development Fund (the “Fund”) will begin when your Studio begins generating revenue from operations. We may, on notice to you, adjust the amount of your required Fund Contributions, subject to the Marketing Expenditure Cap. 3 |
| Regional or Local Advertising Co-Op | As the Co-Op determines (not currently charged) | As the Co-Op determines | We may establish regional cooperatives comprised of Studios that are within a given geographical area (each, a “Co-Op”). If a Co-Op is established where your Studio is located, you will be required to participate in that Co-Op and contribute to that Co-Op in the amounts the Co-Op determines. We may, on notice to you, adjust the amount of your required contributions to the Co-Op, subject to the Marketing Expenditure Cap. |
Source: Item 6 — OTHER FEES (FDD pages 21–26)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft can adjust the amount franchisees are required to contribute to the Brand Development Fund. Currently, the contribution is 2% of Gross Sales, payable weekly. Bft can adjust this amount with notice to the franchisee, but it is subject to the Marketing Expenditure Cap.
The Brand Development Fund is used for various purposes, including product development, marketing, advertising, public relations, and other activities to promote the Bft brand. Bft has sole discretion over all matters relating to the Fund.
The Marketing Expenditure Cap limits the total required marketing contributions, including the Brand Development Fund, Regional or Local Advertising Co-Op, and Local Advertising Requirement, to 7% of Gross Sales per month. If the total Required Marketing exceeds this cap, the franchisee must provide written notice to Bft. Until Bft receives this notice, the franchisee must continue to comply with the original Required Marketing amounts. After providing notice, the franchisee can reduce the Local Advertising Requirement to stay below the cap, but must return to full compliance once the cap is no longer exceeded. This means that while Bft can adjust the Brand Development Fund contribution, the franchisee has some protection against excessive marketing expenses.