What is the 'Development Fee' for a Bft multi-unit developer based on?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
You will be required to pay us a one-time development fee that will be calculated based on the number of Studios you commit to develop under the Multi-Unit Agreement (the "Development Fee").
Source: Item 1 — THE FRANCHISOR, ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–12)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the Development Fee for multi-unit developers is based on the number of studios the developer commits to open under the Multi-Unit Agreement. This fee is a one-time payment required when signing the Multi-Unit Agreement. The minimum number of franchises a developer can commit to acquiring is three.
When a multi-unit developer signs the Multi-Unit Agreement, they will also sign their first Franchise Agreement. Subsequent Franchise Agreements may have materially different terms, including fees, from the initial agreement. This means that while the Development Fee is based on the initial commitment, other fees and terms could change for each subsequent franchise.
Prospective franchisees should carefully consider the number of studios they commit to developing, as this decision directly impacts the Development Fee. It is also important to understand that the terms of future Franchise Agreements may differ, potentially affecting the overall cost and obligations of the multi-unit development plan. Reviewing Exhibit K, the Multi-Unit Agreement, is essential for understanding the full scope of the development rights and obligations.