Can Bft change the interval for Royalty fee payments?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 7% of Gross Sales generated by your Studio over the relevant reporting period 1 | Payable weekly via electronic funds transfer (“EFT”) based on the Gross Sales of your Studio during the preceding business week | You will be required to start paying your Royalty once your Studio begins collecting revenue from operations. We may collect your Royalty on a different interval (for example, monthly). |
Source: Item 6 — OTHER FEES (FDD pages 21–26)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the company has the right to modify the royalty payment schedule. Initially, franchisees are required to remit a royalty fee equivalent to 7% of their studio's gross sales on a weekly basis through electronic funds transfer (EFT). This payment is based on the gross sales generated during the preceding business week and must commence once the studio begins collecting revenue.
However, Bft retains the discretion to alter the payment interval. The FDD specifies that Bft may opt to collect royalties on a different schedule, such as monthly. This flexibility allows Bft to adjust the payment terms as needed, potentially based on the franchisee's performance, operational needs, or changes in Bft's overall financial management strategy.
For prospective franchisees, this means that while the standard royalty payment is weekly, they should be prepared for the possibility of Bft changing it to a monthly or potentially another interval. It is important to maintain open communication with Bft to stay informed of any changes to the payment schedule and to understand the reasons behind such adjustments. This clause provides Bft with the ability to adapt the royalty collection process, which could impact a franchisee's cash flow management.