What agreement must I execute concurrently with the Multi-Unit Agreement for the first Bft studio?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
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Multi-Unit Agreement
Development Fee
If we award you the right to acquire multiple Franchises for Studios within a given Development Area, you must commit to developing and opening at least 3 Studios and pay us a one-time Development Fee in a lump sum upon your execution of the Multi-Unit Agreement. You must execute our current form of Franchise Agreement for the first Studio we grant you the right to open within your Development Area concurrently with the Multi-Unit Agreement. Your Development Fee will be equal to $10,000 for each Studio, less the first one, that you commit to opening in satisfaction of an agreed upon Development Schedule specified in the Multi-Unit Agreement. The number of Studios required to be open under a Multi-Unit Agreement is an agreed upon number (typically, at least 3 Studios). If your Multi-Unit Agreement requires that you open 3 Studios, your Development Fee will be 2 x $10,000, or $20,000. For each additional Studio you are required to open under your Development Schedule, your Development Fee will increase by $10,000. While the Development Fee is not a deposit, we will apply it, in $10,000 increments, toward satisfaction of the initial franchise fee due under each Franchise Agreement (less the first one) you sign in satisfaction of your obligations under the Multi-Unit Agreement. The initial franchise fees paid under each Franchise Agreement shall be the same as required as of the date of this Disclosure Document. The Development Fee is payable in a lump sum, is not refundable, and is determined in the same manne
Source: Item 5 — INITIAL FEES (FDD pages 18–21)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, if you are awarded the right to acquire multiple franchises for studios within a Development Area, you must commit to developing and opening at least three studios. Concurrently with the Multi-Unit Agreement, you must execute Bft's current form of Franchise Agreement for the first studio that Bft grants you the right to open within your Development Area.
The Multi-Unit Agreement mandates a Development Fee, which is calculated based on the number of studios you commit to opening, less the first one. This fee is $10,000 for each studio. For instance, if you commit to opening three studios, the Development Fee will be $20,000 (2 x $10,000). This fee is payable in a lump sum and is non-refundable. However, Bft will apply the Development Fee in increments of $10,000 toward the initial franchise fee due under each Franchise Agreement, excluding the first one.
In summary, when signing a Multi-Unit Agreement with Bft, a prospective franchisee must also sign the standard Franchise Agreement for their first studio. This concurrent execution ensures that both the development rights and the operational framework for the initial studio are agreed upon simultaneously. The Development Fee structure incentivizes multi-unit development while providing a credit towards future franchise fees.