How does Bft determine the average Monthly Membership Attrition Rate for all Qualified Studios?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Additional Definitions (Part C)
● "Membership Attrition Rate" means the number of cancelled Studio memberships during a particular calendar month divided by the number of Studio members at the end of the prior respective calendar month.
Data Set and Methodology (Part C)
The chart above reflects the average monthly Membership Attrition Rate during the Measurement Period (i.e., January 1, 2024 to December 31, 2024) for the 29 Qualified Studios.
We calculated the average monthly Membership Attrition Rate as follows: (a) we calculated the Membership Attrition Rate for each calendar month during the Measurement Period for each such Qualified Studio by calculating the percentage of members that cancelled their memberships in a particular calendar month at each such Qualified Studio; then (b) we calculated an annual Membership Attrition Rate for each such Qualified Studio by determining a weighted average of each such Qualified Studio's Membership Attrition Rate for the twelve months during the 2024 calendar year by allocating weight to the particular month's Membership Attrition Rate based on the number of members that such Qualified Studio had during that month (for example, if a Qualified Studio had 200 members as of January 31, 2024 and had 300 members as of February 29, 2024, the Qualified Studio's Membership Attrition Rate for February 2024 was weighted 1.5 times greater than the Qualified Studio's Membership Attrition Rate for January 2024, as a 300 membership base is 1.5 times greater than a 200 membership base); then (c) we calculated a simple average of all such Qualified Studios' weighted average monthly Membership Attrition Rate to determine the average Monthly Membership Attrition Rate for all 29 Qualified Studios noted above. We also show the range and median of Monthly Membership Attrition Rates for such Qualified Studios.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 67–75)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the average monthly Membership Attrition Rate for Qualified Studios is calculated using a multi-step process. The FDD specifies that the data used for this calculation comes from 29 Qualified Studios during the measurement period of January 1, 2024, to December 31, 2024. The term "Membership Attrition Rate" is defined as the number of studio memberships canceled during a calendar month, divided by the number of studio members at the end of the prior calendar month.
First, Bft calculates the Membership Attrition Rate for each calendar month for each Qualified Studio. Then, an annual Membership Attrition Rate is calculated for each Qualified Studio by determining a weighted average of each studio's monthly attrition rates. The weighting is based on the number of members the studio had during that month. For example, a month with 300 members would be weighted 1.5 times greater than a month with 200 members.
Finally, Bft calculates a simple average of all the Qualified Studios' weighted average monthly Membership Attrition Rates to determine the overall average Monthly Membership Attrition Rate. The FDD also shows the range and median of Monthly Membership Attrition Rates for these Qualified Studios. This comprehensive approach provides prospective franchisees with a detailed understanding of how Bft measures and evaluates membership attrition across its franchise network.