What discretion does Bft have over the Brand Development Fund?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
2 Brand Development Fund. We (and our affiliates) have established the Fund and you will be required to make a weekly Fund Contribution beginning the date your Studio begins collecting revenue from business operations. The Fund Contributions may be used for (among other things) product development; signage; creation, production and distribution of marketing, advertising, public relations and other materials in any medium, including the internet; social media; administration expenses; brand/image campaigns; media; national, regional and other marketing programs; activities to promote current and/or future Studios and the brand; agency and consulting services; research; and any expenses approved by us and associated with your Studio. We will have sole discretion over all matters relating to the Fund.
3Marketing Expenditure Cap. We cannot require that the percentage of Gross Sales that you are required to contribute to the Fund, contribute to a Regional or Local Advertising Co-Op, and spend on the Local Advertising Requirement (collectively, the "Required Marketing") exceed, in the aggregate, seven percent (7%) per month (the "Marketing Expenditure Cap"). However, you must provide us with written notice if the Required Marketing exceeds the Marketing Expenditure Cap, and until we receive your written notice (the "Marketing Notice"), you must comply with the Required Marketing requirements, and no excess amounts will be refunded to you. If the Required Marketing exceeds the Marketing Expenditure Cap, you may, after we receive your Marketing Notice, reduce the Local Advertising Requirement, but only to the extent and for the time necessary to stay below the Marketing Expenditure Cap. You must immediately return to full compliance with Required Marketing once the Marketing Expenditure Cap is no longer exceeded.
Source: Item 6 — OTHER FEES (FDD pages 21–26)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft has sole discretion over all matters relating to the Brand Development Fund. Franchisees are required to make weekly contributions to the Brand Development Fund beginning when their studio starts generating revenue from business operations.
The Brand Development Fund contributions may be used for various purposes, including product development, signage, marketing and advertising materials, public relations, social media, administrative expenses, brand/image campaigns, media, national and regional marketing programs, activities to promote current and future studios, agency and consulting services, and research. The fund can also cover any expenses approved by Bft and associated with the franchisee's studio.
Bft can adjust the amount of required contributions to the Brand Development Fund with notice to the franchisee, but this is subject to a Marketing Expenditure Cap. The percentage of gross sales that franchisees are required to contribute to the fund, contribute to a Regional or Local Advertising Co-Op, and spend on local advertising cannot exceed 7% per month in the aggregate. Franchisees must provide written notice to Bft if the required marketing exceeds this cap; until Bft receives this notice, franchisees must comply with the required marketing contributions. After providing notice, franchisees can reduce their local advertising requirement to stay below the cap, but must return to full compliance once the cap is no longer exceeded.