When is the Development Fee for multiple Bft franchises payable?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
mstances.
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, if a franchisee is granted the right to acquire multiple franchises for studios within a Development Area, they must commit to developing and opening at least three studios. Upon execution of the Multi-Unit Agreement, the franchisee must pay Bft a one-time Development Fee in a lump sum. The Franchise Agreement for the first studio within the Development Area must be executed concurrently with the Multi-Unit Agreement.
The Development Fee is calculated as $10,000 for each studio, less the first one, that the franchisee commits to opening according to the agreed-upon Development Schedule specified in the Multi-Unit Agreement. For example, if the Multi-Unit Agreement requires the franchisee to open three studios, the Development Fee will be 2 x $10,000, totaling $20,000. For each additional studio required beyond that, the Development Fee increases by $10,000. This fee is not a deposit but will be applied in $10,000 increments toward the initial franchise fee due under each Franchise Agreement (excluding the first one) as the franchisee fulfills their obligations under the Multi-Unit Agreement.
The Development Fee is deemed fully earned by Bft upon payment and is non-refundable under any circumstances. The initial franchise fees paid under each Franchise Agreement will be the same as required on the date of the Disclosure Document. Franchisees are required to enter into Bft's current form of franchise agreement for each studio they wish to open under their Multi-Unit Agreement.