What costs are specifically excluded from 'Costs of franchise revenue' for Bft?

According to Bft's 2025 Franchise Disclosure Document, the costs of franchise revenue consist of specific items, but notably exclude certain expenses. Costs of franchise revenue for Bft include commissions related to the signing of franchise agreements. They also include travel and personnel expenses related to the on-site training provided to franchisees. Additionally, these costs encompass expenses related to the purchase of technology packages and the related monthly fees.

However, the key exclusion from 'costs of franchise revenue' for Bft is depreciation and amortization. This means that while the costs directly associated with setting up and supporting new franchises are included, the accounting write-offs related to the declining value of assets (depreciation) and the spreading of intangible asset costs over time (amortization) are not included in this category.

For a prospective Bft franchisee, this distinction is important for understanding the financial statements. It clarifies what expenses are considered direct costs of franchise revenue versus other operational or administrative expenses. Understanding these distinctions can help a franchisee better interpret Bft's financial performance and manage their own studio's finances.