Can Bft change the amount of the Fund Contribution?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.6 Fund Contribution. Franchisor (and its affiliates) have established a creative brand development fund to promote the System, Marks and brand with which the Studio is associated generally (the "Fund").
Franchisee shall contribute to the Fund, as directed by Franchisor from time to time, two percent (2%) of the Gross Sales of its Studio (the "Fund Contribution"), commencing once the Studio starts generating revenue from its business operations of its Studio.
The Fund Contribution will typically be paid in the same manner and at the same interval that the Royalty Fee is collected (based on the Gross Sales of the Studio over the immediately preceding reporting period).
Franchisor has the right, at any time and on notice to Franchisee, to change the amount of the Fund Contribution in accordance with Section 9.1 below.
- 5.7 Technology Fee. Franchisor may charge Franchisee a recurring technology fee, the amount of which may change from time to time during the Term, in Franchisor's discretion, to pay for certain aspects of Franchisee's computer system and/or software used in the operation of the Studio ("Technology Fee").
Franchisor reserves the right to designate and/or change the amount, scope, interval, or manner of payment of the Technology Fee, including the party to whom payment is made, at any time upon providing reasonable written notice to Franchisee; provided, however , Franchisor will not increase the Technology Fee by more than 10% annually.
The Technology Fee may be collected by Franchisor at the same time as the Royalty Fees due hereunder.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft has the right to change the amount of the Fund Contribution. Specifically, franchisees must contribute to the Fund, as directed by Bft, an amount equal to two percent (2%) of the Gross Sales of their Studio. This contribution starts once the Studio begins generating revenue. The Fund Contribution is typically paid in the same manner and at the same interval as the Royalty Fee.
Bft retains the right to modify the Fund Contribution amount at any time, provided they give notice to the franchisee, as outlined in Section 9.1 of the franchise agreement.
In addition to the Fund Contribution, Bft may also charge a recurring technology fee, which can also change over time at Bft's discretion. However, Bft will not increase the Technology Fee by more than 10% annually. Bft must provide reasonable written notice to the franchisee before changing the amount, scope, interval, or manner of payment of the Technology Fee.