How is the Bft Development Fee applied towards the initial franchise fee?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
hree (3) months of operating the initial Studio you are granted under your Multi-Unit Agreement only.
2 Development Fee. The Development Fee is payable to us and is non-refundable. The actual amount of the Development Fee will depend on the number of Studios you agree to develop under the Development Schedule because the Development Fee is equal to $10,000 times the number of Studios you agree to open, less one. The number of Studios required to be open under a Multi-Unit Agreement is an agreed upon number (typically, at least 3 Studios). If your Multi-Unit Agreement requires that you open 3 Studios, your Development Fee will be 2 x $10,000, or $20,000. For each additional Studio you are required to open under your Development Schedule, your Development Fee will increase by $10,000. While the Development Fee is not a deposit, we will apply it, in $10,000 increments, toward satisfaction of the initial franchise fee due under each Franchise Agreemen
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the Development Fee, while not a deposit, is applied towards the initial franchise fees due under each Franchise Agreement, excluding the first one, in increments of $10,000. This applies to franchisees who sign a Multi-Unit Agreement, which requires them to open a specified number of studios. The Development Fee itself is calculated by multiplying $10,000 by the number of studios the franchisee agrees to develop, less one. For example, if a franchisee commits to opening three studios, the Development Fee would be $20,000 (2 x $10,000).
This arrangement benefits franchisees by allowing them to offset a portion of the initial franchise fees with the Development Fee, spreading out the initial investment costs over multiple studios. However, it's important to note that the Development Fee is non-refundable, so franchisees should carefully consider their ability to meet the development schedule outlined in the Multi-Unit Agreement. The initial franchise fee for a single Bft studio is $60,000, but it decreases to $50,000 for a second studio and $40,000 for a third or subsequent studio.
For a franchisee acquiring Development Rights for multiple studios, there may also be a sourcing fee if a franchise broker is owed a commission based on a previous introduction. This sourcing fee is in addition to the Development Fee and can range from $40,000 to $120,000 depending on the number of studios the franchisee has the right to open. The application of the Development Fee towards the initial franchise fees helps to mitigate some of the financial burden associated with expanding the Bft brand through multi-unit development.