How does Bft define the 'median' of data points when presenting averages in Item 19?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
In each instance in which we show an average in this Item 19, we also show the range of the data points and the median data point. The range is the space between the lowest and highest points in the data set. The median is the middle data point; that is, the data point in the center of all data points. Where the number of data points is an even number, there is no middle data point, so the median is the average of the two middle data points.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 67–75)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the median is defined as the middle data point in a set of data. When there is an even number of data points, Bft calculates the median by averaging the two middle data points. This definition is used when Bft presents averages, ranges, and medians in Item 19, which covers financial performance representations.
For a prospective Bft franchisee, understanding the median is crucial for interpreting the financial performance data presented. The median provides a more accurate representation of the typical performance by reducing the impact of extremely high or low values. This is especially important when evaluating potential revenue and membership numbers.
Bft's method of calculating the median is a standard statistical practice. Franchisees should pay close attention to both the average and median values to get a comprehensive understanding of potential financial performance. The range, showing the lowest and highest data points, further helps in assessing the variability in performance among existing Bft studios.