factual

Can the Bft advertising fund be used for franchise sales or solicitations?

Bft Franchise · 2025 FDD

Answer from 2025 FDD Document

A brief statement regarding the availability of System franchises may be included in advertising and other items produced using the Fund, but we do not otherwise expect to use the Fund primarily for any franchise sales or solicitations as of the date of this Disclosure Document.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 37–50)

What This Means (2025 FDD)

According to Bft's 2025 Franchise Disclosure Document, the Brand Development Fund is primarily intended to promote existing studios and the Bft system in general. While a brief statement about the availability of Bft franchises may be included in advertising materials produced using the fund, Bft does not expect to use the fund primarily for franchise sales or solicitations as of the date of the disclosure document.

This means that the advertising fund, which franchisees contribute to (2% of gross sales), is mainly for attracting customers to existing Bft studios rather than recruiting new franchisees. This is a common practice in franchising, as advertising funds are typically geared towards brand awareness and customer acquisition.

However, the FDD language includes the phrase "but we do not otherwise expect to use the Fund primarily for any franchise sales or solicitations as of the date of this Disclosure Document." This implies that Bft retains the right to change this policy in the future. A prospective franchisee should monitor for any changes to this policy in future FDD updates and consider asking Bft directly about their long-term intentions for the fund's usage.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.