What costs does the Bft advertising fund cover?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
e Studio that does not comply with the Franchise Agreement or the Learning Management System (Franchise Agreement, Section 9.3).
Brand Development Fund
The Fund was established to promote Studios and help promote and develop our System and brand generally. As of the date of this Disclosure Document, your Fund Contribution is two percent (2%) of your Studio's Gross Sales. Fund Contributions will be payable from the earlier of (a) the date your Studio opens, or (b) the date the Studio receives a payment from a client in connection with Approved Services to be provided at any point. We may increase the Fund Contribution upon 60 days' written notice to you, subject to the Marketing Expenditure Cap (Franchise Agreement, Sections 5.6 and 9.1).
The Fund will be administered by us (or our affiliates), as we deem appropriate in our discretion. We have also established a Fund advisory committee (the "FAC") to serve in an advisory capacity on matters related to the Fund. The Fund will be maintained and operated by us (or our affiliates) to meet the costs of conducting regional and national advertising and promotional efforts, other brand development activities, as well as related technology used to implement the foregoing (i.e., digital marketing platform, System web portal) that we determine beneficial to the System and employing advertising/public relations agencies to assist in advertising activities. With the assistance of the FAC, we will direct all public relations, advertising and promotions with sole discretion over the message, creative concepts, materials and media used in the programs and the placement and allocation thereof. We have the power to form, change or dissolve the FAC. We will pay for these activities from the Fund. The Fund Contributions may be used for traditional advertising activities, such as website development, social media, public relations, advertising campaigns (television, radio, print or other media), or other promotions which will further develop and/or raise the awareness/visibility of our brand, System and Studio locations (Franchise Agreement, Sections 6.8 and 9.1).
We are not obligated to ensure that Fund activities or dollars are spent equally, on a pro rata basis, either on your Studio, or all Studios in an area.
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, the Brand Development Fund is used to promote Bft studios, develop the Bft system and brand, and cover costs related to regional and national advertising and promotional efforts. The fund also covers related technology, such as a digital marketing platform and system web portal, deemed beneficial to the system. Bft may also employ advertising and public relations agencies, paying for these services from the fund.
Specifically, the fund may be used for traditional advertising activities, including website development, social media, public relations, and advertising campaigns across various media like television, radio, and print. These efforts aim to further develop and raise awareness and visibility of the Bft brand, its system, and studio locations. Bft retains sole discretion over the message, creative concepts, materials, and media used in these programs, as well as their placement and allocation.
During the fiscal year ended December 31, 2024, Bft allocated the fund contributions as follows: 9.8% for production, 58.5% for administration and implementation, 7.7% on media and public relations, and 24.0% for Internet and digital-related activities. This breakdown provides insight into how Bft prioritizes the use of advertising funds, with a significant portion dedicated to administration and implementation, followed by digital activities.