How is the Bft Development Fee applied towards the initial franchise fees?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
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Multi-Unit Agreement
Development Fee
If we award you the right to acquire multiple Franchises for Studios within a given Development Area, you must commit to developing and opening at least 3 Studios and pay us a one-time Development Fee in a lump sum upon your execution of the Multi-Unit Agreement. You must execute our current form of Franchise Agreement for the first Studio we grant you the right to open within your Development Area concurrently with the Multi-Unit Agreement. Your Development Fee will be equal to $10,000 for each Studio, less the first one, that you commit to opening in satisfaction of an agreed upon Development Schedule specified in the Multi-Unit Agreement. 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 Agreement (less the first one) you sign in satisfaction of your obligations under the Multi-Unit Agreement. The initial franchise fees paid under each Franchise Agreement shall be the same as required as of the date of this Disclosure Document. The Development Fee is payable in a lump sum, is not refundable, and is determined in the same manne
Source: Item 5 — INITIAL FEES (FDD pages 18–21)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the Development Fee is applied towards the initial franchise fees for franchisees who enter into a Multi-Unit Agreement. If a franchisee commits to opening multiple Bft studios within a Development Area, they must pay a Development Fee. This fee is calculated as $10,000 for each studio, excluding the first one, that the franchisee commits to opening, as specified in the Development Schedule within the Multi-Unit Agreement. For example, if the agreement requires opening three studios, the Development Fee would be $20,000 (2 x $10,000).
While the Development Fee is not a deposit, Bft will apply it in $10,000 increments toward the initial franchise fee due under each Franchise Agreement, excluding the first one, that the franchisee signs to fulfill their obligations under the Multi-Unit Agreement. The initial franchise fees for each agreement will be the same as required on the date of the Disclosure Document. The Development Fee is payable in a lump sum and is non-refundable. It is applied uniformly to all franchisees who sign Multi-Unit Agreements.
For a single Bft studio, the initial franchise fee is $60,000, which is due upon signing the Franchise Agreement and is non-refundable. However, this fee can be reduced to $50,000 for a second franchise if the franchisee already owns and operates a Bft studio, and further reduced to $40,000 for the third or subsequent franchises if the franchisee owns at least two Bft studios and is in compliance with all agreements. These reductions do not apply to the Development Fee under a Multi-Unit Agreement.