What documentation must a Bft franchisee provide to the franchisor to support their Local Advertising Requirement expenditures?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
tion and implementation, 7.7% on media and public relations, and 24.0% for Internet and digital-related activities.
Local Advertising Requirement; Co-Ops
As part of your material obligations under your Franchise Agreement, you must spend the greater of (a) $1,500 or (b) two percent (2%) of Gross Sales each month on marketing and advertising materials (excluding agency and vendor fees) that we approve in connection with the promotion of your Studio within your Designated Territory (your "Local Advertising Requirement"). We may periodically increase your Local Advertising Requirement, subject to the Marketing Expenditure Cap. Upon our request, you must provide us with an accounting of your monthly expenditures associated with your Local Advertising Requirement, along with invoices and other relevant documentation to support those expenditures. Please be advised that the Local Advertising Requirement is only the minimum amount you must spend each month, and we encourage you t
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 37–50)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees are obligated to spend a minimum amount on local advertising, specifically the greater of $1,500 or 2% of Gross Sales each month. This spending must be on marketing and advertising materials approved by Bft, excluding agency and vendor fees. This is known as the Local Advertising Requirement.
To verify compliance with this requirement, Bft may request an accounting of the franchisee's monthly expenditures. Along with this accounting, the franchisee must provide invoices and other relevant documentation to substantiate the reported expenditures. This documentation serves as proof that the franchisee is meeting their Local Advertising Requirement and that the funds are being used for approved marketing purposes.
It is important to note that the Local Advertising Requirement is a minimum, and Bft encourages franchisees to spend more to promote their studio locally. Franchisees should maintain detailed records of all advertising expenses and related documentation to readily comply with any requests from Bft. Failure to provide adequate documentation could potentially result in a breach of the Franchise Agreement.