Can Bft collect payments from franchisees for equipment and supplies and pay the suppliers directly?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Required Use of Approved Suppliers. Franchisee may, at its option, designate, mandate or approve suppliers (which may include Franchisor and its affiliates) of all equipment, gear, merchandise, apparel, supplies, and other assets used in the development and operation of Franchisee's Studio. Franchisee agrees to purchase all such items only approved or designated suppliers and maintain all such items according to manufacturer or Franchisor specifications. Franchisor and its affiliates may, at their option, collect from Franchisee some or all payments, fees, and expenses for and associated with such items and pay the suppliers directly on Franchisee's behalf. If Franchisor elects to do so, Franchisee agrees that Franchisor or its affiliates may auto-debit Franchisee's bank account for such amounts in the same manner and using the same authorization that Franchisee grants Franchisor with respect to payment of Royalty Fees
and other fees. Franchisor and its affiliate may derive revenue or obtain other consideration from suppliers based on purchases that Franchisee makes, and Franchisor and its affiliates may use such revenue or consideration without restriction.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft or its affiliates have the option to collect payments from franchisees for equipment, gear, merchandise, apparel, supplies, and other assets used in the development and operation of the franchisee's studio. Bft can then pay the suppliers directly on the franchisee's behalf.
If Bft chooses to collect payments and pay suppliers directly, the franchisee agrees that Bft or its affiliates can auto-debit the franchisee's bank account for the required amounts. This auto-debit authorization would be the same one the franchisee grants Bft for royalty fees and other fees.
Bft and its affiliates may receive revenue or other consideration from suppliers based on the franchisee's purchases. Bft is allowed to use this revenue or consideration without any restrictions. This arrangement allows Bft to streamline the payment process for franchisees while also potentially generating additional revenue for the company.