What was the amount of Bft's franchise and area development fees as of December 31, 2023?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| Balance at March 6, 2023 | $ — |
|---|---|
| Contract liabilities contributed by Member | 96,875 |
| Revenue recognized that was included in deferred | — |
| revenue at the beginning of the period | |
| Increase, excluding amounts recognized as revenue | |
| during the period | 24,363 |
| Balance at December 31, 2023 | 121,238 |
| Revenue recognized that was included in deferred | |
| revenue at the beginning of the year | (22,382) |
| Decrease in deferred revenue due to divestitures | (1,281) |
| Increase, excluding amounts recognized as revenue | |
| during the year | 8,334 |
| Balance at December 31, 2024 | $ 105,909 |
The following table illustrates estimated revenue expected to be recognized in the future related
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the franchise and area development fees as of December 31, 2023, totaled $121,238,000. This figure represents the cumulative fees Bft has collected from franchisees and area developers up to that date. These fees are initially recorded as deferred revenue and recognized over time.
Of this total, $111,320,000 was classified as the non-current portion of deferred revenue, indicating that this amount is expected to be recognized as revenue over a period longer than one year. The remaining $9,918,000 was classified as the current portion of deferred revenue, meaning Bft anticipates recognizing this amount as revenue within the next year.
For a prospective Bft franchisee, this information provides insight into the financial structure of the franchise system. The initial franchise fee ranges from $60,000 to $350,000, depending on the number of studios purchased under franchise agreements or area development agreements. Understanding how these fees are accounted for can help franchisees assess the financial stability and revenue recognition practices of Bft.