How is the Bft Development Fee determined for all franchisees who sign Multi-Unit Agreements?
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 manner for all franchisees who sign Multi-Unit Agreements.
You will be required to enter into our then-current form of franchise agreement for each Studio you wish to open under your Multi-Unit Agreement.
Your Development Fee will be deemed fully earned upon payment and is not refundable under any circumstances. The Development Fee described above is calcul
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 for a Multi-Unit Agreement is determined by the number of studios a franchisee commits to opening within a specific Development Area. The franchisee must develop and open a minimum of three studios. The Development Fee is calculated as $10,000 for each studio, excluding the first one. This fee is payable in a lump sum upon execution of the Multi-Unit Agreement and is applied in $10,000 increments toward the initial franchise fee due for each studio beyond the first. The Development Fee is determined in the same manner for all franchisees who sign Multi-Unit Agreements. For example, if a franchisee commits to opening three studios, the Development Fee will be 2 x $10,000, totaling $20,000.
The Development Fee is not a deposit but is applied towards the initial franchise fees for each studio opened under the Multi-Unit Agreement, except for the first one. The initial franchise fees for each studio will be the same as required on the date of the Franchise Disclosure Document. This fee is non-refundable and is deemed fully earned upon payment.
This structure incentivizes franchisees to commit to multiple locations, allowing Bft to expand more rapidly. For a prospective franchisee, this means a significant upfront investment in the form of the Development Fee, but it also provides a structured path for area development. It is important for franchisees to carefully consider the Development Schedule and their ability to meet the obligations outlined in the Multi-Unit Agreement, as the Development Fee is non-refundable.