What is the formula for calculating the Bft Local Advertising Requirement?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
uthorized under this Agreement.
9.2 Initial Marketing Spend; Local Marketing Activities.
- A. Initial Marketing Spend. Franchisee must spend a minimum of $15,000 (the "Initial Marketing Spend") in connection with the initial sales and marketing activities set forth in connection with (i) Franchisee's approved Opening Support Program, and (ii) other marketing and promotional activities that Franchisor approves or designates. Franchisor may also require that Franchisee expend all or any portion of the Initial Marketing Spend on initial marketing/advertising and/or public relations materials or services that are purchased from an approved supplier. The Initial Marketing Spend will not count towards Franchisee's local advertising expenditure requirements provided in Section 9.2.B below
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees are required to engage in local advertising and marketing activities to attract members to their studio. The Local Advertising Requirement mandates that franchisees spend a minimum amount each month on approved local advertising and marketing, excluding agency and vendor fees, to promote their Bft studio within their designated territory.
The specific amount a Bft franchisee must spend is the greater of two options: a fixed amount of $1,500, or 2% of the studio's Gross Sales for that month. This means that if 2% of a studio's gross sales is less than $1,500, the franchisee must still spend $1,500. However, if 2% of gross sales exceeds $1,500, the franchisee is obligated to spend the higher amount.
Bft retains the right to increase the Local Advertising Requirement during the term of the franchise agreement, but this is subject to a Marketing Expenditure Cap. Franchisees must provide Bft with an accounting of all local advertising expenditures upon written request, including invoices and supporting documentation. This ensures compliance with the advertising requirements and allows Bft to monitor local marketing efforts.