What is a Designated Market Area for a Bft franchise?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
If the Authorized Location for your Studio has not been identified at the time the Franchise Agreement is signed, we will assign you a Designated Market Area (Franchise Agreement, Section 1.2).
We may provide you with: (i) our current written site selection guidelines, to the extent such guidelines are in place, and any other site selection counseling and assistance we determine is appropriate; and (ii) the contact information of any local real estate broker that we have an existing relationship with and that is familiar with our confidential site selection/evaluation criteria, if we know any such brokers in or around the Designated Market Area you are assigned (Franchise Agreement, Section 1.2). We do not generally own the premises that System franchisees use for their Studio.
Our guidelines for site selection may require that you conduct, at your expense, an evaluation of the demographics of the market area for the location. Ideally, the Authorized Location of your Studio will be a major, national-tenant, anchored commercial retail center that meets our then-current requirements for population density, demographics, available parking, traffic flow and entrance/exit from the site (Franchise Agreement, Section 1.2).
If you locate a site, we will approve or disapprove of the site after we receive any and all reasonably requested information regarding your proposed site from you (Franchise Agreement, Section 1.2). While we are not required under the Franchise Agreement to notify you as to whether the site has been approved or rejected within a certain timeframe, we will typically notify you of our decision within 30 days after you have submitted all requested information to us regarding the site. We use a software program to evaluate the demographics of a market area for site selection approval. If we cannot agree on a site, we may extend the time for you to obtain a site, or we may terminate the Franchise Agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 37–50)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, a Designated Market Area is assigned to a franchisee if the Authorized Location for their studio has not been identified by the time the Franchise Agreement is signed. This means that Bft will grant the franchisee rights to a specific geographic area where they can operate their studio.
Bft may also provide the franchisee with the contact information of local real estate brokers familiar with Bft's site selection criteria within the Designated Market Area. This assistance can be valuable for franchisees who are new to the area or unfamiliar with the local real estate market. The franchisee is responsible for all costs associated with finding and developing a location.
Bft's site selection guidelines may require the franchisee to conduct a demographic evaluation of the market area. The ideal location is in a major, national-tenant, anchored commercial retail center that meets Bft's requirements for population density, demographics, available parking, and traffic flow. Bft uses a software program to evaluate the demographics of a market area for site selection approval.
If the franchisee locates a site, Bft must approve or disapprove of the site after receiving all requested information. Bft typically notifies the franchisee of its decision within 30 days after receiving all the required information. If Bft and the franchisee cannot agree on a site, Bft may extend the time for the franchisee to obtain a site, or Bft may terminate the Franchise Agreement. This highlights the importance of thorough communication and collaboration between the franchisee and Bft during the site selection process.