What expenses are included in the Additional Funds estimate for a Bft franchise?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
This is an estimate of certain funds needed to cover your business (not personal) expenses during the first three (3) months of operation after your Studio's Soft Opening and certain other typical expenses in connection with the development of the Studio during the Pre-Sales Phase, such as expenses incurred in connection with the selling of pre-sale memberships.
These expenses include, for example, payments to us, vendor processing fees, business incorporation and legal costs, broker and consultant fees, bank service fees, and music licensing fees; initial personnel wages; ongoing purchases of equipment and supplies; utilities; recruitment fees; and repairs and maintenance.
The estimate for music licensing fees assumes that you will directly clear music with ASCAP, BMI, SESAC, and GMR and that you do not play music in your Studio from any other performing rights organizations.
If you choose to obtain music clearances from an approved vendor, you may incur higher prices than direct payments to the performing rights organizations.
Your cost will depend upon your management skill, experience and business acumen; local economic conditions; the prevailing wage rate; competition; and sales of the Studio during the period.
This estimate is net of any revenue generated in connection with your Studio during the relevant time period.
The estimates in this Item 7 are based on: (i) our franchisee's experience in developing Studios using the resources that we make available to them; (ii) our and our Predecessor's experience in selling franchises for Studios; (iii) the experience of our Affiliate SPV Franchisors and Affiliate Prior Franchisors in developing other fitness concepts and information related to their respective studio investment costs; (iv) current estimates we have received from our Approved Suppliers and other third-party vendors; and (v) our affiliates' experience in developing and/or operating Studios and franchises of other Xponential Brands. The availability and terms of financing available to
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the additional funds estimate covers various business expenses during the initial months of operation. This estimate, which ranges from $30,000 to $78,000, is intended to cover expenses incurred during the first three months after the studio's soft opening, as well as other typical expenses during the pre-sales phase. These expenses are related to the development of the studio and selling pre-sale memberships.
Specifically, the additional funds are allocated to payments to Bft, vendor processing fees, business incorporation and legal costs, broker and consultant fees, bank service fees, and music licensing fees. Furthermore, these funds also cover initial personnel wages, ongoing purchases of equipment and supplies, utilities, recruitment fees, and repairs and maintenance. The estimate for music licensing fees assumes direct clearance with ASCAP, BMI, SESAC, and GMR.
It is important to note that the estimate is net of any revenue generated by the studio during the relevant time period. The actual amount needed will depend on factors such as management skill, local economic conditions, prevailing wage rates, competition, and sales of the studio. This estimate does not include any finance charges, interest, or debt service obligations. Prospective franchisees should carefully consider these factors and plan accordingly to ensure they have sufficient capital to cover these initial operating expenses.