How must the Bft Development Fee be paid?
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 | |
| Sourcing Fee 3 | $0 to $50,000 | 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 payable as a lump sum via certified check or bank wire. This payment is due at the signing of the Multi-Unit Agreement. For a Multi-Unit Agreement requiring the opening of three studios, the Development Fee is $20,000, calculated as 2 x $10,000.
The Development Fee is determined by multiplying $10,000 by the number of studios the franchisee agrees to develop, less one. For each additional studio required under the Development Schedule, the Development Fee increases by $10,000. While the Development Fee is not a deposit, Bft will apply it in $10,000 increments toward the initial franchise fee due under each Franchise Agreement (excluding 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 be required to pay a sourcing fee if a franchise broker is owed a commission for introducing them to Bft. This sourcing fee varies depending on the number of additional studios the franchisee gains the right to open under the Multi-Unit Agreement. For instance, acquiring development rights for three to five studios incurs a sourcing fee of $50,000, while rights for six to nine studios require an $84,000 sourcing fee.