When does Bft consider the initial franchise fee fully earned?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
or other legal proceeding involving such third-party. Franchisor shall not be liable for any legal expenses of Franchisee unless (a) pre-approved in writing by Franchisor in its discretion, and (b) the action proceeds or arises out of Franchisee's authorized use of the Marks hereunder.
- 4.4 Modification, Discontinuance or Substitution. Franchisor reserves the right, in its sole judgment, to modify, discontinue or replace any Mar
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the initial franchise fee of $60,000 is considered fully earned by Bft upon payment by the franchisee. This fee is for the right to operate a Bft studio under the terms of the franchise agreement. The document explicitly states that the initial franchise fee is non-refundable under any circumstances.
This means that once a prospective franchisee pays the $60,000 initial franchise fee to Bft, the fee is immediately recognized as earned revenue by Bft. The franchisee cannot get a refund of this fee, regardless of whether they successfully open a Bft studio or if the franchise agreement is terminated for any reason. This is a standard practice in franchising, as the initial fee compensates the franchisor for the initial costs and efforts in evaluating and onboarding a new franchisee.
For a prospective Bft franchisee, this non-refundable clause is a critical point to consider. It underscores the importance of conducting thorough due diligence before signing the franchise agreement and paying the initial fee. This due diligence should include a careful review of the FDD, business plan, and market analysis, as well as discussions with existing Bft franchisees to fully understand the obligations and potential risks involved in operating a Bft franchise. Given the non-refundable nature of the fee, franchisees should be confident in their ability to meet Bft's requirements and successfully operate the studio before making the payment.