Can Bft change the amount of the Technology Fee?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 may charge franchisees a recurring technology fee, and the amount of this fee may change during the term of the agreement. This fee is intended to cover aspects of the franchisee's computer system or software used in operating the studio. Bft has the right to modify the amount, scope, interval, or manner of payment of the Technology Fee at any time, provided they give reasonable written notice to the franchisee. However, Bft will not increase the Technology Fee by more than 10% annually. The Technology Fee may be collected at the same time as the Royalty Fees.
This policy gives Bft considerable flexibility in adjusting the Technology Fee to respond to changing technology costs or to invest in new systems. While the 10% annual cap provides some protection, franchisees should still budget for potential increases in this fee. It is important for prospective franchisees to understand how the Technology Fee is currently calculated and what factors might cause it to increase.
Franchisees should inquire about the specific technologies covered by the fee and how Bft determines the amount of the fee. Understanding the rationale behind the Technology Fee and the potential for increases will help franchisees better manage their operating costs and assess the overall financial viability of the franchise. This level of transparency can help a franchisee plan for the future and understand the value they receive for the technology fee.
It is common for franchisors to charge technology fees to cover the costs of software, hardware, and IT support provided to franchisees. The ability to adjust these fees is also typical, as technology costs can fluctuate significantly. However, the 10% annual cap on increases is a beneficial provision for franchisees, as it limits the potential for large, unexpected cost increases.