What calendar year is used by Bft to determine the weighted average of each Qualified Studio's Membership Attrition Rate?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
The chart above reflects the average monthly Membership Attrition Rate during the Measurement Period (i.e., January 1, 2024 to December 31, 2024) for the 29 Qualified Studios.
We calculated the average monthly Membership Attrition Rate as follows: (a) we calculated the Membership Attrition Rate for each calendar month during the Measurement Period for each such Qualified Studio by calculating the percentage of members that cancelled their memberships in a particular calendar month at each such Qualified Studio; then (b) we calculated an annual Membership Attrition Rate for each such Qualified Studio by determining a weighted average of each such Qualified Studio's Membership Attrition Rate for the twelve months during the 2024 calendar year by allocating weight to the particular month's Membership Attrition Rate based on the number of members that such Qualified Studio had during that month (for example, if a Qualified Studio had 200 members as of January 31, 2024 and had 300 members as of February 29, 2024, the Qualified Studio's Membership Attrition Rate for February 2024 was weighted 1.5 times greater than the Qualified Studio's Membership Attrition Rate for January 2024, as a 300 membership base is 1.5 times greater than a 200 membership base); then (c) we calculated a simple average of all such Qualified Studios' weighted average monthly Membership Attrition Rate to determine the average Monthly Membership Attrition Rate for all 29 Qualified Studios noted above. We also show the range and median of Monthly Membership Attrition Rates for such Qualified Studios.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 67–75)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the company uses the 2024 calendar year to determine the weighted average of each Qualified Studio's Membership Attrition Rate. The FDD states that the average monthly Membership Attrition Rate during the Measurement Period (January 1, 2024 to December 31, 2024) was calculated for 29 Qualified Studios.
To calculate the annual Membership Attrition Rate for each Qualified Studio, Bft determines a weighted average of each studio's Membership Attrition Rate for the twelve months during the 2024 calendar year. The weighting is based on the number of members the Qualified Studio had during each month. For example, a studio with 300 members in February 2024 would have its February attrition rate weighted 1.5 times greater than its January 2024 rate if it had 200 members in January.
This weighted average approach provides a more accurate reflection of membership trends by accounting for fluctuations in membership size throughout the year. By using the 2024 calendar year, Bft aims to provide prospective franchisees with relevant and recent data to evaluate potential studio performance.