When is the Bft Development Fee due?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure 1 | Amount | Method of Payment | When Due | To Whom |
|---|---|---|---|---|
| Payment Is to be Made | ||||
| Development Fee 2 | $20,000 | Lump sum by certified check or bank wire | At signing of the Multi- Unit Agreement Us |
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 is due at the signing of the Multi-Unit Agreement. The Development Fee is paid in a lump sum via certified check or bank wire. The amount of the Development Fee depends on the number of studios the franchisee agrees to develop, and is calculated as $10,000 times the number of studios the franchisee agrees to open, less one.
For example, if a franchisee agrees to open three studios, the Development Fee will be 2 x $10,000, totaling $20,000. This fee is non-refundable. While the Development Fee is not a deposit, Bft will apply it in $10,000 increments toward satisfaction of the initial franchise fee due under each Franchise Agreement (less the first one) that the franchisee signs to fulfill their obligations under the Multi-Unit Agreement.
In addition to the Development Fee, existing franchisees may also owe a sourcing fee if a franchise broker is owed a commission in connection with the purchase of Development Rights under a Multi-Unit Agreement based on a previously-made introduction to Bft or its affiliates. This sourcing fee is also due at the signing of the Multi-Unit Agreement and is paid via certified check or bank wire.