What brand did Bft divest on May 20, 2024?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 3 – Divestitures
Divestiture of Stride brand – On February 13, 2024, the Company and an affiliate of the Member entered into an agreement with a buyer, pursuant to which the Company divested the Stride brand, including the intellectual property, franchise rights and franchise agreements for open studios. The buyer of the Stride brand is a former member of management and shareholder of the Member's parent. The Company received no consideration from the divestiture of the Stride brand and the Member will assist the buyer with transition support including cash payments of approximately $265 payable over the 12-month period following divestiture. The divestiture allows the Company to better focus and utilize its resources on its other brands. The Company recognized a gain on divestiture of $323, which was included within selling, general and administrative expenses in the consolidated statements of operations. The divested brand did not represent a strategic shift that ha
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, on May 20, 2024, Bft divested the Row House brand. This divestiture involved an agreement between Bft, an affiliate of the Member, and a buyer, transferring the Row House brand's intellectual property, franchise rights, and franchise agreements for open studios.
Notably, Bft received no direct financial consideration from the divestiture. However, the document states that the divestiture allows Bft to concentrate its resources on its remaining brands. Bft recognized a loss of $59 from the divestiture, which was included within selling, general, and administrative expenses in the consolidated statements of operations.
The FDD indicates that the Row House brand divestiture was not considered a strategic shift that would significantly impact Bft's overall operations or financial results. Therefore, it was not presented as discontinued operations in the financial statements. The Member retained certain liabilities related to known litigation, pre-litigation, and disputes as of the closing of the divestiture.