What failure did CP SPV have regarding exemption notices related to Bft?

According to Bft's 2025 Franchise Disclosure Document, CP SPV failed to file certain exemption notices in a timely manner. This issue was part of a larger investigation by California's Department of Financial Protection and Innovation (DFPI) into Xponential Fitness and its related entities, including Bft. To resolve the investigation, the DFPI and the involved parties entered into a Consent Order.

While the Consent Order acknowledges CP SPV's failure to timely file exemption notices, it does not specify the exact nature or number of these notices. The Consent Order also included findings that certain registration applications filed by the Brand Franchisors with the DFPI contained material misrepresentations and omissions. As part of the Consent Order, the DFPI Parties agreed to cease from violating Sections 31110, 31200 and 31201 of the California Corporations Code and to pay an administrative penalty of $450,000.

For a prospective Bft franchisee, this indicates a history of regulatory compliance issues within the Xponential Fitness franchise system. It is important to note that the Brand Franchisors did not admit or deny any of the Commissioner's findings. Franchisees should seek clarification from Bft regarding the specific exemption notices that CP SPV failed to file, the reasons for the failure, and the steps Bft has taken to prevent similar issues in the future. Additionally, prospective franchisees should be aware of the compliance training now required for individuals with management responsibility related to the sale or operation of Bft franchises.