What is the Development Fee for a Bft Multi-Unit Agreement?
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 for a Multi-Unit Agreement is calculated based on the number of studios the franchisee commits to develop. The Development Fee is $10,000 multiplied by the number of studios agreed to open, less one. For example, if a franchisee agrees to open three studios, the Development Fee would be 2 x $10,000, totaling $20,000. For each additional studio required under the development schedule, the Development Fee increases by $10,000. The number of studios required to be open under a Multi-Unit Agreement is an agreed upon number (typically, at least 3 Studios).
While the Development Fee is not a deposit, Bft applies it in $10,000 increments toward 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. This means that the franchisee will receive credit for the development fee when they open each subsequent Bft studio.
Additionally, the FDD mentions a potential sourcing fee if an existing franchisee acquires development rights through a Multi-Unit Agreement and a franchise broker is owed a commission. This sourcing fee ranges from $40,000 to $120,000, depending on the number of additional studios the franchisee gains the right to open, and is in addition to the Development Fee. For example, if a franchisee acquires the rights to open three to five additional studios, the sourcing fee would be $50,000.