Can Bft designate itself or its affiliates as an Approved Supplier for any item franchisees must purchase in the future?

According to Bft's 2025 Franchise Disclosure Document, Bft retains the right to designate itself or its affiliates as an approved supplier for any item that franchisees are required to purchase for their studios in the future. This means that Bft can mandate that franchisees purchase certain items directly from Bft or its affiliated companies.

This policy has several implications for prospective franchisees. First, it gives Bft control over the supply chain and ensures consistency across all franchise locations. Second, it allows Bft and its affiliates to generate revenue from the sale of goods and services to franchisees. While the FDD states that Bft did not receive any revenue from the sale of goods and services to franchisees in fiscal year 2024, its Predecessor received $4,727,544 from franchisees. This demonstrates the potential for Bft to profit from required purchases.

However, this arrangement also carries potential risks for franchisees. Bft's designation as an approved supplier may limit a franchisee's ability to shop around for the best prices or preferred products. While franchisees can request approval for alternate suppliers, Bft is not obligated to grant these requests and may charge a fee for evaluating them. Furthermore, Bft may re-inspect and/or revoke approval of a supplier or item at any time, potentially disrupting a franchisee's supply chain.

It is important for prospective franchisees to carefully consider these factors and evaluate the potential costs and benefits of Bft's approved supplier policy. Understanding the specific items that franchisees are required to purchase from Bft or its affiliates, as well as the potential for revenue generation by Bft, is crucial for making an informed investment decision.