Are Bft company-owned or affiliate-owned studios required to contribute to the advertising fund at the same rate as franchisees?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Our company-owned or affiliate-owned Studios, if and when operating, are not required to contribute to the Fund at the same rate as franchisees. As of the date of this Disclosure Document, all franchisees that contribute to the Fund may not contribute at the same rate as you. Should the Fund Contribution for the System decrease at any time, we have the right to reduce our contribution from company-owned or affiliate-owned Studios to the rate specified for franchised locations.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 37–50)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, company-owned or affiliate-owned studios are not required to contribute to the Brand Development Fund at the same rate as franchisees. However, Bft retains the right to reduce its contribution from company-owned or affiliate-owned studios to the rate specified for franchised locations should the fund contribution for the system decrease at any time. As of the date of the 2025 Disclosure Document, all franchisees that contribute to the Fund may not contribute at the same rate as you.
This means that franchisees may bear a proportionally larger share of the advertising fund contributions compared to company-owned or affiliate-owned studios. This could be a disadvantage for franchisees if the performance of the advertising fund is critical to their success.
Prospective franchisees should inquire about the specific contribution rates for company-owned studios and the circumstances under which Bft might change these rates. Understanding the contribution structure and how it might evolve is essential for assessing the financial implications of the franchise agreement.