What criteria must a Bft studio meet to be considered a 'New Studio' in the context of the FDD?

According to Bft's 2025 Franchise Disclosure Document, a 'New Studio' is defined specifically for the purposes of Item 19, which covers financial performance representations. To be considered a 'New Studio', the studio must be owned and operated by a franchisee. Additionally, the studio must have conducted its 'Soft Opening' in the 2024 calendar year. The FDD specifies that 'New Studios' do not include studios operating at 'Non-Traditional Sites'.

The 'Soft Opening' is when the Bft studio first opens its doors to the public and begins offering regular classes within the physical studio premises. This definition is important because the financial performance data for 'New Studios' is tracked starting from the month of their 'Soft Opening'. The Gross Revenue data reported for Month 1 includes only revenue generated after the Soft Opening, excluding any pre-opening membership sales.

Studios operating at 'Non-Traditional Sites' are excluded from the 'New Studio' category. 'Non-Traditional Sites' are locations within larger venues or facilities, such as gyms, cruise ships, malls, or airports, where the studio's customer base is primarily drawn from the venue's existing traffic. This exclusion suggests that Bft believes the financial performance of studios in such locations may not be representative of typical franchise operations.

For a prospective franchisee, understanding this definition is crucial for interpreting the financial performance data presented in Item 19. The data for 'New Studios' provides insights into the initial months of operation, but it's important to remember that these figures may not apply to studios in non-traditional locations. Franchisees should also note that the data is based on studios that opened in 2024, and more recent economic conditions or market changes could impact future performance.