What article and sections in the Bft Franchise Agreement address advertising and the fund?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
hich they provide instruction.
Our primary initial training programs as of the date of this Disclosure Document are described below:
TRAINING PROGRAMS
| Obligation | Section in | |||
|---|---|---|---|---|
| Section in Franchise Agreement | Multi-Unit Agreement | Disclosure Document Item | ||
| Territorial development and | Sections 8.7 and 15.1.B(12) | Sections 2.C and 2.D, Exhibit A | Item 12 | |
| k. | ||||
| sales quotas | ||||
| Ongoing product/service | Sections 6.5 and 8.4 | Not Applicable | Items 8 and 11 | |
| l. | ||||
| purchases | ||||
| Maintenance, appearance and | Sections 7.1 and 8.1 | Not Applicable | Items 6 and 17 | |
| m. | ||||
| remodeling requirements | ||||
| n. Insura nce | Sections 10.5 and 15.1.B(8) | Not Applicable | Items 6, 7 and 8 | |
| o. |
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, advertising and the fund are addressed in Article 9, Sections 5.6 and 15.1.B(5) of the Franchise Agreement. This section is also referenced in Item 6 and Item 11 of the disclosure document.
Bft requires franchisees to engage in local marketing activities to attract members to their studio. All advertising and promotional materials, including those used on the internet, must be submitted for written approval in advance. Franchisees must also adhere to social media guidelines outlined in the Learning Management System, ensuring that all online communications are appropriate and compliant with the Franchise Agreement.
The Brand Development Fund is designed to promote Bft studios and develop the brand. As of the date of the 2025 Disclosure Document, franchisees contribute 2% of their studio's gross sales to the Fund. These contributions are due from the earlier of the studio opening date or the date the studio receives payment from a client. Bft has the right to increase the fund contribution with 60 days' written notice, subject to a Marketing Expenditure Cap. The fund is administered by Bft (or its affiliates) and may be used for regional and national advertising, brand development, and related technology. Bft has established a Fund advisory committee (FAC) to provide advice on fund-related matters, but Bft retains sole discretion over advertising and promotional activities.
Bft is not obligated to ensure that fund activities or dollars are spent equally or on a pro rata basis for each studio or area. Advertising and promotional materials produced using the Fund may include a brief statement regarding the availability of Bft franchises, but the Fund is not primarily used for franchise sales or solicitations.