Where can Bft conduct a review of a franchisee's financial records?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall have the right, in its sole determination, to require a review by such representative(s) as Franchisor shall choose, of all information pertaining to the Studio, including financial records, books, tax returns, papers, and business management software programs of Franchisee, at any time during normal business hours without prior notice for the purpose of accurately tracking unit and System-wide sales, sales increases or decreases, effectiveness of advertising and promotions, and for other reasonable business purposes.
Such review will take place at the Studio or Franchisee's head office (if different), or both, and Franchisee agrees to provide all information pertaining to the Studio requested by Franchisor during its review.
If (a) the audit is conducted because of a failure by Franchisee to furnish reports, supporting records or other required information or to furnish the reports and information on a timely basis, or (b) the audit otherwise reveals an underreporting of two percent (2%) or more by Franchisee, then Franchisee shall reimburse Franchisor for all costs of the audit or review including, without limitation, travel, lodging, wage expense and reasonable accounting and legal expense.
The foregoing remedies shall be in addition to any other remedies Franchisor may have under this Agreement or applicable law.
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 review a franchisee's financial records. This review can occur at the franchisee's studio, the franchisee's head office (if different from the studio), or both locations.
Bft can conduct these reviews at any time during normal business hours without prior notice. The purpose of the review is to accurately track unit and system-wide sales, sales increases or decreases, evaluate the effectiveness of advertising and promotions, and for other reasonable business purposes.
The franchisee is obligated to provide all requested information pertaining to the studio during the review. If an audit is required because the franchisee failed to furnish reports or information on time, or if the audit reveals an underreporting of two percent or more, the franchisee must reimburse Bft for all costs associated with the audit or review. These costs include travel, lodging, wage expenses, and reasonable accounting and legal expenses. These remedies are in addition to any other remedies Bft may have under the agreement or applicable law.