What is Exhibit K to the Bft Franchise Disclosure Document?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
We also offer qualified individuals and entities the right to acquire multiple Franchises (the "Development Rights") within a designated geographical area (the "Development Area") under our current form of multi-unit agreement, which is attached to this Disclosure Document as Exhibit K (the "Multi-Unit Agreement"). The Multi-Unit Agreement will provide a designated schedule in which you (or your affiliates) must acquire Franchises and open and operate the designated number of Studios (a "Development Schedule").
Under the Multi-Unit Agreement, the minimum number of Franchises you may commit to acquiring is three. For each Franchise you acquire pursuant to the Multi-Unit Agreement, you (or your affiliate) will sign our then-current form of Franchise Agreement. When you sign the Multi-Unit Agreement, you will also sign your 1st Franchise Agreement in the form attached to this Disclosure Document as Exhibit A. Each subsequent Franchise Agreement you sign will be our then-current form, and it might contain terms that are materially different than those found in our current form, including with respect to fees.
You will be required to pay us a one-time development fee that will be calculated based on the number of Studios you commit to develop under the Multi-Unit Agreement (the "Development Fee").
Source: Item 1 — THE FRANCHISOR, ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–12)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Exhibit K is the current form of multi-unit agreement, also referred to as the "Multi-Unit Agreement". This agreement allows qualified individuals and entities to acquire multiple Bft franchises within a designated geographical area, known as the "Development Area".
The Multi-Unit Agreement includes a "Development Schedule," which outlines the timeline for acquiring franchises and opening Bft studios. The minimum number of franchises a franchisee may commit to acquiring under this agreement is three. For each franchise acquired under the Multi-Unit Agreement, the franchisee will sign Bft's then-current form of Franchise Agreement. The initial Franchise Agreement signed concurrently with the Multi-Unit Agreement is the form attached as Exhibit A to the Disclosure Document. Subsequent Franchise Agreements may have materially different terms, including variations in fees.
Furthermore, Bft requires a one-time development fee, referred to as the "Development Fee," which is calculated based on the number of studios the franchisee commits to developing under the Multi-Unit Agreement. This fee compensates Bft for granting the development rights and supporting the franchisee's expansion across the designated area.