What costs can Bft require a franchisee to reimburse related to re-inspections?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor will bear the costs of all such initial inspections, but it reserves the right to require Franchisee to reimburse it costs (including travel expenses, room and board, employee/representative wages, and related fees) associated with re-inspections or follow-up visits that Franchisor or its designees conduct after any inspection of the Studio reveals one or more failures to comply with System Standards, and/or if any follow-up visit is necessary because Franchisor or its designated representatives were for any reason prevented from properly inspecting any part of the Studio.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, while Bft covers the costs of initial inspections, franchisees may be required to reimburse Bft for expenses related to re-inspections or follow-up visits. This occurs if an initial inspection reveals failures to comply with Bft's System Standards, or if a follow-up visit is needed because Bft's representatives were unable to properly inspect the studio initially.
The costs that Bft can require the franchisee to reimburse include travel expenses, room and board, employee/representative wages, and related fees incurred by Bft. This means that if a Bft franchisee's studio does not meet the brand's standards, the franchisee will be responsible for covering the costs associated with Bft conducting further inspections to ensure compliance.
This policy incentivizes franchisees to maintain Bft's System Standards to avoid incurring additional expenses. It is important for prospective franchisees to understand these potential costs and ensure they are prepared to meet Bft's standards consistently. Franchisees should clarify with Bft what specific criteria are assessed during inspections and what constitutes a failure to comply with System Standards to better anticipate and avoid these reimbursement costs.