Who was the buyer of the Stride brand from Bft?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
surements. ASC 820 establishes a valuation hierarchy for disclosures of the inputs to valuations used to measure fair value.
Notes to Consolidated Financial Statements (amounts in thousands)
This hierarchy prioritizes the inputs into three broad levels as follows:
Level 1 – Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that can be accessed at the measurement date.
Level 2 – Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates and yield curves), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).
Level 3 – Unobservable inputs that reflect assumptions about what market participants would use in pricing the asset or liability. These inputs would be based on the best information available, including the Company's own data.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to the 2025 FDD, Bft divested its Stride brand on February 13, 2024. The buyer was identified as a former member of management and shareholder of the Member's parent. Bft received no direct monetary consideration from this divestiture. Instead, the Member (likely referring to a parent or affiliated entity) will assist the buyer with transition support, including cash payments of approximately $265, payable over the 12-month period following the divestiture.
This arrangement suggests that the divestiture of the Stride brand was not primarily driven by financial gain for Bft. Rather, it appears to be a strategic decision to allow Bft to concentrate its resources on its other brands. The fact that the buyer is a former insider could indicate a desire for a smooth transition and continued operation of the Stride brand under new ownership.
For a potential Bft franchisee, this information provides insight into the company's strategic decisions regarding its brand portfolio. The divestiture of the Stride brand and Row House brand (also mentioned in the document) shows that Bft is willing to make significant changes to its business structure to focus on core operations. While the FDD does not elaborate on the reasons behind these divestitures, it is something a prospective franchisee may want to discuss with the franchisor to understand their long-term vision and risk management strategies.