Does Bft or its affiliates receive payments from approved suppliers?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
als from franchisees to add new suppliers if we believe that approval would not be in the best interests of the System.
We and/or our affiliates may receive payments or other compensation from Approved Suppliers or any other suppliers on account of these suppliers' dealings with us, you, or other Studios in the System, such as rebates, commissions or other forms of compensation, which may comprise of fixed payments and/or percentages of overall sales transactions. During the fiscal year 2024, we received $154,772 in allowances, rebates, or other consideration from vendors in connection with purchases by franchisees, which constituted 6.3% of our total revenue of $2,447,103 during the year, and our Predecessor received $594,663 in similar allowances, rebates, and other consideration. Additionally, Xponential received $6,837,252 in allowances, rebates, or other consideration from vendors in connection with purchases by franchisees of all Xponential Brands in the United States and Canada. We may use any amounts that we receive from suppliers for any purpose that we deem appropriate. We and/or our affiliates may negotiate supply contracts with our suppliers under which we are able
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–36)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft and its affiliates may receive payments or other compensation from approved suppliers or other suppliers due to their dealings with Bft, its franchisees, or other studios in the Bft system. These payments can take the form of rebates, commissions, or other compensation, which may include fixed payments or percentages of overall sales transactions.
In the fiscal year 2024, Bft received $154,772 in allowances, rebates, or other consideration from vendors related to franchisee purchases. This amount constituted 6.3% of Bft's total revenue of $2,447,103 during that year. Additionally, Bft's Predecessor received $594,663 in similar allowances, rebates, and other consideration. Xponential, the parent company, received $6,837,252 in allowances, rebates, or other consideration from vendors related to purchases by franchisees of all Xponential brands in the United States and Canada. Bft is allowed to use the money received from suppliers for any purpose they deem appropriate.
This arrangement is common in franchising, where franchisors negotiate with suppliers and receive compensation for directing franchisee purchases to those suppliers. For a prospective Bft franchisee, this means that a portion of the money they spend on required purchases from approved suppliers ultimately benefits Bft. While this may not directly impact the prices franchisees pay, it's important to understand that Bft has a financial incentive to maintain relationships with specific suppliers. Franchisees should consider this when evaluating the overall cost and value of the Bft franchise opportunity.