definition

What is the definition of 'Monthly New Memberships' used in the Bft financial performance representation?

Bft Franchise · 2025 FDD

Answer from 2025 FDD Document

nthly Active Members to determine the average Monthly Active Members for all 29 Qualified Studios noted above. We also show the range and median of Monthly Active Members for all 29 Qualified Studios.

Number of Qualified Studios Average Median Range (Min) Range (Max) Number / Percentage of Qualified Studios that Met or Exceeded the Average
1st Quartile 7 239 238 207 293 3 / 43%
2nd Quartile 7 187 183 167 207 3 / 43%
3rd Quartile 7 150 152 138 160 5 / 71%
4th Quartile 8 111 108 76 133 4 / 50%
Total 29 169 160 76 293 12 / 41%

Part A-3: Monthly New Memberships of Qualified Studios

In this Part A-3, we sorted the 29 Qualified Studios, ranked (highest to lowest) by the amount of Monthly New Memberships reported by the Qualified Studios for the Measurement Period, into four (4) quartiles, with the 1st, 2nd, and 3rd Quartiles each comprising 7 Qualified Studios and the 4th Quartile comprising 8 Qualified Studios. "Monthly New Memberships" means new Studio members who signed a studio membership agreement with a Qualified Studio for a particular calendar month.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 67–75)

What This Means (2025 FDD)

According to Bft's 2025 Franchise Disclosure Document, 'Monthly New Memberships' refers to the count of new studio members who have entered into a studio membership agreement with a Qualified Studio within a specific calendar month. This metric is used in Part A-3 of Item 19, which focuses on the monthly new memberships of qualified studios.

To calculate the average Monthly New Memberships, Bft totals the number of new memberships for each calendar month during the measurement period for each qualified studio. Then, they calculate a simple average of the monthly new memberships for the entire measurement period to determine the average monthly new memberships for each studio. Finally, Bft calculates a simple average of all the qualified studios' average monthly new memberships to determine the overall average monthly new memberships.

Bft uses this data to sort the 29 qualified studios into quartiles, ranking them from highest to lowest based on the number of monthly new memberships reported. This allows prospective franchisees to see a range of performance levels among existing Bft locations. Understanding how 'Monthly New Memberships' is defined and calculated is crucial for interpreting Bft's financial performance representations and assessing the potential for new member acquisition at a franchise location.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.