What constitutes a 'Non-Traditional Site' for a Bft studio?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
sed Throughout Item 19**
- "Gross Revenue" means the total revenue generated by a given Studio, including all revenue generated from the sale and provision of any and all approved services at, from, or otherwise through, that Studio. Gross Revenue excludes sales tax (that the Studio owner must pay directly to the appropriate taxing authority). Please note, Gross Revenue is defined differently than how "Gross Sales" is defined in the Franchise Agreement, and as such, the amount of Royalty fees you pay under the Franchise Agreement may be different than if applied to Gross Revenue data provided below.
- "Measurement Period" means the period beginning on January 1, 2024, and ending on December 31, 2024.
- "Non-Traditional Site" means any location that is situated within or as part of a larger venue or facility and, as a result, is likely to draw the predominance of its customers from those persons who are using or attending events in the larger venue or facility (for example, "big box" gyms and/or fitness facilities, cruise ships, military bases, shopping malls, airports, sports facilities and stadiums, industrial or office complexes, hotels, train stations and other t
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 67–75)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, a 'Non-Traditional Site' is defined as a location situated within a larger venue or facility. The FDD specifies that these locations are expected to draw the majority of their customers from individuals already present at the larger venue or attending events there.
Examples of Non-Traditional Sites provided in the Bft FDD include locations within "big box" gyms, fitness facilities, cruise ships, military bases, shopping malls, airports, sports facilities and stadiums, industrial or office complexes, hotels, train stations and other transportation facilities, travel plazas, casinos, hospitals, theme parks, convention centers, colleges/universities, and multi-unit residential properties. The definition also includes "other similar captive market locations."
Notably, the FDD indicates that financial performance data from studios operating at Non-Traditional Sites is excluded from the data pertaining to 'Qualified Studios' and 'New Studios' when calculating average revenues and other performance metrics. This suggests that Bft anticipates that Non-Traditional Sites may perform differently than traditional locations, potentially due to the captive audience or other unique operational characteristics. A prospective franchisee should carefully consider the implications of operating at a Non-Traditional Site and discuss the potential differences in performance with Bft.