What deferred revenue and costs related to franchise agreement contracts were contributed by the Member to XPOF Assetco, LLC on December 31, 2023, which may relate to Bft?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
ed Financial Statements (amounts in thousands)
Note 1 – Organization and Description of Business
XPOF Assetco, LLC (the "Company"), a Delaware limited liability company (LLC), was formed on March 6, 2023. The single member of the Company is Xponential Fitness LLC, a Delaware limited liability company (the "Member"). The Company is the direct parent and sole member of Club Pilates Franchise SPV, LLC; CycleBar Franchising SPV, LLC; Stretch Lab Franchise SPV, LLC; Stride Franchise SPV, LLC; Row House Franchise SPV, LLC; Yoga Six Franchise SPV, LLC; AKT Franchise SPV, LLC; PB Franchising SPV, LLC; Rumble Franchise SPV, LLC and BFT Franchise SPV, LLC, (together "Subsidiaries") each a Delaware limited liability corporation. The Company was formed in connection with a contemplated reorganization of Xponential Fitness LLC's structure. The Company, through its brands, licenses its proprietary systems to franchisees who in turn operate studios to promote training and instruction programs to their club members. There were no operations of the Company prior to March 6, 2023.
The Member contributed $8,000 in cash, $8,910 in property and equipment and $90,812 in intangible assets as of March 15, 2023. The majority of the intangible assets contributed consist of trademarks related to Club Pilates, CycleBar and Pu
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, on December 31, 2023, the Member contributed deferred revenue and deferred costs related to franchise agreement contracts with customers of $96,875 and $40,765, respectively. The Member in this case is Xponential Fitness LLC, the single member of XPOF Assetco, LLC. Bft Franchise SPV, LLC is one of the subsidiaries of XPOF Assetco, LLC.
Deferred revenue represents payments received for goods or services that have not yet been delivered or performed. In the context of franchise agreements, this typically refers to initial franchise fees that Bft collects upfront but recognizes as revenue over the term of the franchise agreement. Deferred costs are expenses that have been incurred but not yet recognized as an expense on the income statement. These costs are often related to the sale of franchises, such as commissions paid to brokers or sales personnel.
The contribution of these deferred revenues and costs to XPOF Assetco, LLC suggests an internal reorganization or transfer of assets and liabilities within the Xponential Fitness LLC structure. For a prospective Bft franchisee, this transaction itself may not have an immediate direct impact. However, it is essential to understand the financial structure of the franchise system and how these transactions might affect the financial stability and resources available to support the Bft franchise network. It is also important to note that all assets held by the Company collateralize the existing debt of the Member.