What costs and expenses does the Bft advertising fund cover?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
We (and our affiliates) will have the right to make disbursements from the Fund, as we determine appropriate to cover the costs and expenses associated with the marketing, advertising and promotion of the brand,
Marks, System, Studio locations and/or the Approved Products and Approved Services, including: the cost of formulating, developing and implementing advertising and promotional campaigns; the reasonable costs of administering the Fund, including accounting expenses and the actual costs of salaries and fringe benefits paid to our employees engaged in administration of the Fund and/or creation, development and/or placement of any creative and/or implementation of any campaigns associated with the same. The Fund is not a trust or escrow account, and we have no fiduciary obligations regarding the Fund. We are not required to audit the Fund, but we may retain independent certified public accountants to prepare an annual audit of the Fund, at the expense of the Fund. We will provide a copy of the annual accounting of the Fund to franchisees upon written request. Our company-owned or affiliate-owned Studios, if and when operating, are not required to contribute to the Fund at the same rate as franchisees. As of the date of this Disclosure Document, all franchisees that contribute to the Fund may not contribute at the same rate as you. Should the Fund Contribution for the System decrease at any time, we have the right to reduce our contribution from company-owned or affiliate-owned Studios to the rate specified for franchised locations.
We are not required to spend all Fund Contributions in the fiscal year they are received. You agree to participate in all Fund programs. The Fund may furnish you with marketing, advertising and promotional materials; however, we may require that you pay the cost of producing, shipping and handling for such materials.
During the fiscal year ended on December 31, 2024, the Fund Contributions were spent 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.
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 advertising fund is used to cover various costs and expenses related to marketing, advertising, and promotion of the Bft brand, its system, studio locations, and approved products and services. These expenses include the formulation, development, and implementation of advertising and promotional campaigns.
The fund also covers the reasonable costs of administering the fund itself, including accounting expenses and the salaries and benefits of Bft employees involved in the administration, creation, development, or placement of advertising campaigns. Bft retains the right to allocate these funds as it deems appropriate.
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 provides a detailed breakdown of how the advertising fund was utilized in the previous year, offering transparency to potential franchisees.