According to Bft's 2025 Franchise Disclosure Document, a 'Qualified Studio' must meet specific criteria related to its operational history and location type. To be considered a Qualified Studio, the franchise location must have been owned and operated by a franchisee for the entire Measurement Period, which was from January 1, 2024, to December 31, 2024.

Additionally, the studio cannot be situated in a Non-Traditional Site. The FDD defines a Non-Traditional Site as a location within a larger venue or facility, such as a "big box" gym, cruise ship, military base, shopping mall, airport, sports facility, industrial complex, hotel, train station, casino, hospital, theme park, convention center, college, or multi-unit residential property. These locations typically draw customers primarily from the venue they are located within.

In practical terms, this definition means that Bft uses data from studios with a stable operating history (full year under the same franchisee) and standard locations to assess financial performance. This approach aims to provide prospective franchisees with a more reliable representation of potential earnings, excluding the variables introduced by non-traditional venues or short-term ownership. Therefore, when reviewing the financial performance representations in Item 19, it's important to understand that these figures are based on a specific subset of Bft studios that meet these criteria.