Is the Development Fee paid to Bft refundable?
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 paid to Bft is non-refundable. The Development Fee is payable upon signing the Multi-Unit Agreement. The actual amount of the Development Fee depends on the number of studios the franchisee agrees to develop, calculated as $10,000 times the number of studios agreed 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.
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 (less the first one) that the franchisee signs to fulfill their obligations under the Multi-Unit Agreement. This means that while the initial payment is non-refundable, it is later credited towards franchise fees for subsequent studios opened under the agreement.
Prospective franchisees should carefully consider the number of studios they commit to developing under the Multi-Unit Agreement, as the Development Fee increases with each additional studio and is non-refundable. Understanding how this fee is applied to future franchise fees is crucial for financial planning. Franchisees should also be aware of additional sourcing fees that may apply if a franchise broker is owed a commission, as these fees are in addition to the Development Fee.