What is the connection between the royalty fees paid to Bft, as described in Item 6, and the franchisee's obligations regarding site selection, as mentioned in Item 9?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
. It will help you find more detailed information about your obligations in these agreements and in other items of the Disclosure Document.**
| as | |
|---|---|
| Package, including speakers, cabling, mounts and | |
| Obligation | Section in Franchise Agreement |
| Site Selection and a. acquisition/lease | Sections 1.2, 2.2.C, 7.1 and 7.2, 15.1.A(10)-(11), and Exhibit 4 |
| b. Pre-o pening purchases/leases | Sections 5.4, 6.1, 7.3, and 7.4 |
| Site development and other pre- c. opening requirements | Sections 6.1 to 6.3, 6.5, and 6.8, Article 7, and Section 9.2 |
| d. Initia l and ongoing training | Sections 5.5 and 6.2 |
| e. Open ing | Sections 2.2(D) and 6.1 |
| f. Fees | Article 5 and Sections 6.2, 9.1, 9.2 and 9.4 |
| Compliance with standards and | Article 4 and Sections 1.2, 2.2.E, |
| g. | 6.3, 6.5, 7.1, 7.3, 8.1, 8.4, 8.5, |
| policies / Operating Manual | 8.7 and 9.3 |
| Trademarks and proprietary h. information | Article 4 and Sections 12.1, 15.1.A(6), and 15.1.A(8) |
| Restrictions on | Sections 8.4 and 15.1.A(14) |
| i. | |
| products/services offered | |
| Warranty and customer service | Sections 8.1, 8.3, and 8.5 to 8.7 |
| j. | |
| requirements |
ITEM 10 FINANCING
We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. While we do not offer direct or indirect financing, certain third-party lenders, such as Amerifund and Navitas, have sponsored our convention in the past and may do so in the future, but we are unaware of the terms of any financing you may, if at all, obtain from these or other lenders.
ITEM 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING
Except as listed below, we are not required to provide you with any assistance.
A. Pre-Opening Assistance
Franchise Agreement
Before your Studio's Soft Opening:
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- We will provide you (or, if you are an entity, your Operating Principal), as well as your Designated Manager (if appointed) of your Studio, with our proprietary Owner/Operator Training Module and Designated Manager Training Module, respectively, that at least you (or, if appropriate, your Operating Principal) will need to complete prior to opening your Studio (the "Initial Training Program"). We will typically provide the Initial Training Program within the thirty (30) days prior to your Studio opening, but that timing will be subject to the availability and schedules of our training personnel.
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, referencing various sections of the franchise agreement. This includes obligations related to site selection and acquisition/lease, as detailed in Sections 1.2, 2.2.C, 7.1, 7.2, 15.1.A(10)-(11), and Exhibit 4. It also covers pre-opening purchases/leases (Sections 5.4, 6.1, 7.3, and 7.4), site development and other pre-opening requirements (Sections 6.1 to 6.3, 6.5, and 6.8, Article 7, and Section 9.2), and opening procedures (Sections 2.2(D) and 6.1). The franchisee's obligations also extend to fees, as described in Article 5 and Sections 6.2, 9.1, 9.2, and 9.4.
Item 6, as referenced in Item 9, pertains to the franchisor's services, particularly regarding general guidance for opening a Bft studio. This guidance includes consultation and advice on the proper display of marks, layout and design, procurement of fitness equipment, furniture, fixtures, initial inventories, and managing construction or remodeling of the studio. After the franchisee executes an accepted lease for the authorized location, Bft will provide specifications and standards for building, equipment, furnishings, fixtures, layout, design, and signs. The franchisee's architect is responsible for proposing changes to meet legal requirements and adapt to the location's unique characteristics, but these changes require Bft's prior written consent.
While Item 9 broadly mentions 'Fees' and references sections including 6.2, it does not explicitly detail how royalty fees are directly linked to the franchisee's site selection obligations. However, Item 6 indicates that Bft provides guidance and specifications for the studio's layout and design after the lease is secured, which could indirectly influence the franchisee's ability to generate revenue and, consequently, pay the royalty fees. The franchisee's ability to find a suitable site and develop it according to Bft's standards is crucial for the studio's success and the franchisee's capacity to meet their financial obligations, including royalty fees.
In summary, while the FDD excerpts do not provide a direct, explicit connection between royalty fees and site selection, the franchisor's guidance on studio design and standards after site selection, as mentioned in Item 6, plays a crucial role in the franchisee's ability to operate successfully and meet their financial obligations, including the royalty fees. A prospective franchisee should discuss with Bft how the site selection process and the franchisor's subsequent guidance on studio design and development can impact the studio's potential revenue and the franchisee's ability to pay ongoing royalty fees.