How does the definition of 'you' as a franchisee in Item 1 relate to the estimated initial investment required for a Bft franchise, as detailed in Item 7?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 7: ESTIMATED INITIAL INVESTMENT]
| Type of Expenditure 1 | Low Amount | High Amount | Method of Payment | When Due | To Whom Payment Is to be Made |
|---|---|---|---|---|---|
| Initial Franchise Fee 2 | $60,000 | $60,000 | Lump sum by certified check or bank wire | At signing of Franchise Agreement | Us |
| Sourcing Fee2 | $0 | $28,000 | Lump sum by certified check or bank wire | At signing of Franchise Agreement | Us |
| Travel & Living | $0 | $2,500 | As arranged | As incurred | Transportation |
| Expenses While | Carriers, Hotel | ||||
| Training 3 | Facilities, Etc. | ||||
| Real Estate/Lease 4 | $37,000 | $75,500 | As arranged | As incurred | Landlord; Attorneys; Accountants |
| Net Leasehold Improvements (Net of Estimated Tenant Improvement Allowances) 5 | $72,000 | $560,500 | As arranged | As incurred | Approved Suppliers (Third Party), Architects and Contractors |
| Signage 6 | $8,000 | $37,000 | As arranged | As incurred | Approved Suppliers (Third Party) and Vendors |
| Insurance 7 | $5,017 | $9,826 | As arranged | Before Opening | Approved Suppliers (Third Party) |
| Fitness Equipment & Initial FF&E Package 8 | $198,500 | $236,000 | As required | Before Opening | Us |
| Pre-Sales and Soft Opening Retail Inventory Kit 9 | $14,000 | $18,000 | Lump Sum | Before Opening | Us |
| Audio / Visual | $38,500 | $38,500 | As arranged | As arranged | Approved |
| Package, Computer | Suppliers (Third | ||||
| System, and Related | Party) and | ||||
| Components 10 | Vendors | ||||
| Initial Marketing & Advertising Spend 11 | $36,800 | $50,200 | As arranged | As arranged | Approved Suppliers (Third Party) and Vendors |
| Initial Instructor | $5,000 | $5,000 | As arranged | As arranged | Us |
| 12 | |||||
| Training Fee | |||||
| Type of Expenditure 1 | Low Amount | High Amount | Method of Payment | When Due | To Whom Payment Is to be Made |
| ----------------------------------------------- | --------------- | ---------------- | ---------------------- | ------------- | ------------------------------------------------ |
| Technology and Software Fees 13 | $5,019 | $5,019 | As arranged | As arranged | Us and Approved Suppliers (Third- Party) |
| Additional Funds – 3 months 14 | $30,000 | $78,000 | As arranged | As incurred | Employees, Vendors, Utilities |
| TOTAL ESTIMATED INITIAL INVESTMENT | $509,836 | $1,204,045 |
[Item 7: ESTIMATED INITIAL INVESTMENT]
Notes to Table A:
All amounts payable to us are non-refundable, unless otherwise noted. Amounts payable to suppliers/vendors are refunded according to arrangements you make with the vendor, if any. These figures are only estimates of the range of your initial costs during the development of your Studio, the Pre-Sales Phase, and the first three (3) months of operation after your Studio's Soft Opening. Leasing and financing is available for many of the above expenses. We do not offer direct or indirect financing, but we may assist you in obtaining working capital through other sources.
1 General. The initial investment table shows certain expenditures required to establish and operate a Studio. This Item 7 assumes and expects that (a) you will timely perform all pre-opening obligations and open and commence operations of your Studio within the time periods prescribed in your Franchise Agreement; and (b) you will develop and build your Studio in accordance with our specifications for Studios. The typical Studio will likely be approximately 2,400 to 2,800 square feet in size and be in a rectangular shape. All estimates listed in the table above exclude tax.
2 Initial Franchise Fee. The Initial Franchise Fee is non-refundable. The Initial Franchise Fee for a single Studio is $60,000. We do not provide financing for the Initial Franchise Fee. As provided in Item 5, if this is your (or your affiliates') second Studio, the Initial Franchise Fee will be reduced to $50,000, and if this is your (or your affiliates') third or subsequent Studio, this Initial Franchise Fee will be reduced to $40,000.
Additionally, if you are an existing franchisee and a franchise broker is owed a commission in connection with the purchase of your additional franchise based on a previously-made introduction to us or our affiliates, you will pay us an additional sourcing fee of $28,000 (in addition to the Initial Franchise Fee).
[Item 7: ESTIMATED INITIAL INVESTMENT]
| Type of Expenditure 1 | Amount | Method of Payment | When Due | To Whom |
|---|---|---|---|---|
| Payment Is to be Made | ||||
| Development Fee 2 | $20,000 | Lump sum by certified check or bank wire | At signing of the Multi- Unit Agreement Us | |
| Sourcing Fee 3 | $0 to $50,000 | Lump sum by certified check or bank wire | At signing of the Multi- Unit Agreement. Us | |
| Initial Investment to Open | $509,836 to | See Table A of this Item 7 | ||
| Initial Studio 4 | $1,204,045 | |||
| TOTAL ESTIMATED INITIAL INVESTMENT | $529,836 to $1,274,045 | This is the total estimated initial investment to enter into a Multi-Unit Agreement for the right to develop three (3) total franchised Studios, as well as the costs to open and commence operating your initial Studio for the first three (3) months, as described more fully in Table A of this Item 7. See Note 3. |
What This Means (2025 FDD)
Based on the 2025 FDD, Item 7 outlines the estimated initial investment for a Bft franchise, and it considers 'you' as the franchisee in several ways. The initial investment ranges from $509,836 to $1,204,045 for a single studio. This investment covers various expenditures such as the initial franchise fee, sourcing fee, real estate/lease costs, leasehold improvements, signage, insurance, fitness equipment, inventory, audio/visual package, marketing, training, and additional funds for the first three months of operation. The FDD also considers the possibility of a Multi-Unit Agreement, which affects the initial investment. For a Multi-Unit Agreement to develop three studios, the total estimated initial investment ranges from $529,836 to $1,274,045, including a development fee of $20,000. The FDD specifies that these figures are estimates based on Bft's experience and that the actual costs can vary depending on factors like management skill, local economic conditions, and sales of the studio.
For a prospective Bft franchisee, understanding these costs is crucial for financial planning. The initial franchise fee is $60,000 for a single studio, but it can be reduced to $50,000 or $40,000 for subsequent studios if the franchisee already owns other Bft locations. Additionally, existing franchisees might incur a sourcing fee of up to $28,000 for a single studio or up to $50,000 for a multi-unit agreement if a franchise broker is owed a commission. The FDD notes that amounts payable to Bft are generally non-refundable, while refunds from suppliers/vendors depend on the arrangements made with them.
The FDD also highlights that the initial investment table assumes the franchisee will meet all pre-opening obligations and develop the studio according to Bft's specifications. The typical studio size is expected to be approximately 2,400 to 2,800 square feet. The estimates exclude tax and any financing charges, interest, or debt service obligations. The availability and terms of financing will depend on the franchisee's creditworthiness and the policies of lending institutions. Therefore, a potential franchisee should carefully review these estimates and consider their own financial situation and local market conditions to determine the actual investment required to open and operate a Bft franchise.