Does the estimated initial investment for a Bft franchise include estate taxes and insurance?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
NITIAL INVESTMENT**
A. Franchise Agreement
| Type of Expenditure 1 | Low Amount | High Amount | Method of Payment | When Due | To Whom Payment Is to be Made |
|---|---|---|---|---|---|
| Initial Franchise Fee 2 | $60,000 | $60,000 | Lump sum by certified check or bank wire | At signing of Franchise Agreement | Us |
| Sourcing Fee2 | $0 | $28,000 | Lump sum by certified check or bank wire | At signing of Franchise Agreement | Us |
| Travel & Living | $0 | $2,500 | As arranged | As incurred | Transportation |
| Expenses While | Carriers, Hotel | ||||
| Training 3 | Facilities, Etc. | ||||
| Real Estate/Lease 4 | $37,000 | $75,500 | As arranged | As incurred | Landlord; Attorneys; Accountants |
| Net Leasehold Improvements (Net of Estimated Tenant Improvement Allowances) 5 | $72,000 | $560,500 | As arranged | As incurred | Approved Suppliers (Third Party), Architects and Contractors |
| Signage 6 | $8,000 | $37,000 | As arranged | As incurred | Approved Suppliers (Third Party) and Vendors |
| Insurance 7 | $5,017 | $9,826 | As arranged | Before Opening | Approved Suppliers (Third Party) |
| Fitness Equipment & Initial FF&E Package 8 | $198,500 | $236,000 | As required | Before Opening | Us |
| Pre-Sales and Soft Opening Retail Inventory Kit 9 | $14,000 | $18,000 | Lump Sum | Before Opening | Us |
| Audio / Visual | $38,500 | $38,500 | As arranged | As arranged | Approved |
| Package, Computer | Suppliers (Third | ||||
| System, and Related | Party) and | ||||
| Components 10 | Vendors | ||||
| Initial Marketing & Advertising Spend 11 | $36,800 | $50,200 | As arranged | As arranged | Approved Suppliers (Third Party) and Vendors |
| Initial Instructor | $5,000 | $5,000 | As arranged | As arranged | Us |
| 12 | |||||
| Training Fee | |||||
| Type of Expenditure 1 | Low Amount | High Amount | Method of Payment | When Due | To Whom Payment Is to be Made |
| ----------------------------------------------- | --------------- | ---------------- | ---------------------- | ------------- | ------------------------------------------------ |
| Technology and Software Fees 13 | $5,019 | $5,019 | As arranged | As arranged | Us and Approved Suppliers (Third- Party) |
| Additional Funds – 3 months 14 | $30,000 | $78,000 | As arranged | As incurred | Employees, Vendors, Utilities |
| TOTAL ESTIMATED INITIAL INVESTMENT | $509,836 | $1,204,045 |
Notes to Table A:
All amounts payable to us are non-refundable, unless otherwise noted. Amounts payable to suppliers/vendors are refunded according to arrangements you make with the vendor, if any. These figures are only estimates of the range of your initial costs during the development of your Studio, the Pre-Sales Phase, and the first three (3) months of operation after your Studio's Soft Opening. Leasing and financing is available for many of the above expenses. We do not offer direct or indirect financing, but we may assist you in obtaining working capital through other sources.
1 General. The initial investment table shows certain expenditures required to establish and operate a Studio. This Item 7 assumes and expects that (a) you will timely perform all pre-opening obligations and open and commence operations of your Studio within the time periods prescribed in your Franchise Agreement; and (b) you will develop and build your Studio in accordance with our specifications for Studios. The typical Studio will likely be approximately 2,400 to 2,800 square feet in size and be in a rectangular shape. All estimates listed in the table above exclude tax.
2 Initial Franchise Fee. The Initial Franchise Fee is non-refundable. The Initial Franchise Fee for a single Studio is $60,000. We do not provide financing for the Initial Franchise Fee. As provided in Item 5, if this is your (or your affiliates') second Studio, the Initial Franchise Fee will be reduced to $50,000, and if this is your (or your affiliates') third or subsequent Studio, this Initial Franchise Fee will be reduced to $40,000.
Additionally, if you are an existing franchisee and a franchise broker is owed a commission in connection with the purchase of your additional franchise based on a previously-made introduction to us or our affiliates, you will pay us an additional sourcing fee of $28,000 (in addition to the Initial Franchise Fee).
3 Travel and Living Expenses While Training. You (or, if you are an entity, your Operating Principal) must complete the "Owner/Operator Training Module" and our proprietary initial training program (the "Initial Training Program").
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the estimated initial investment does not include estate taxes. However, it does include an estimated cost for insurance. The initial investment table outlines various expenditures required to establish and operate a Bft studio, explicitly excluding tax from all estimates.
The table includes a line item for insurance, with the estimated cost ranging from $5,017 to $9,826. This estimate covers the annual premium for the minimum required insurance, utilizing Bft's required or approved third-party vendor. The document advises franchisees to check with their insurance carrier for actual premium quotes and costs, as these can vary based on location, experience with the insurance carrier, loss experience, deductibles, coverage amounts, and other factors beyond Bft's control.
Furthermore, the FDD recommends that prospective Bft franchisees seek advice from their own insurance professional before making any binding commitments. The lease agreement may also require the franchisee to pay their pro rata share of real estate taxes and insurance, in addition to base rent and common area maintenance charges. These additional costs are included in the real estate/lease estimates, which range from $37,000 to $75,500.