Where in the Bft Franchise Agreement can I find information about the fees I am obligated to pay?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 5: INITIAL FEES]
ITEM 5 INITIAL FEES
Franchise Agreement
Initial Franchise Fee
You must pay to us a lump sum initial franchise fee of $60,000 (the "Initial Franchise Fee") to establish a single Studio under a Franchise Agreement. The Initial Franchise Fee is due upon the signing of the Franchise Agreement. The Initial Franchise Fee will be fully earned by us upon payment and is not refundable, in whole or in part, under any circumstance.
Separately, if you (or your affiliates) already own and operate a BFT Studio, then the Initial Franchise Fee for your second franchise will be reduced to $50,000. If you (or your affiliates) already own and operate at least two BFT Studios, then the Initial Franchise Fee for your third or subsequent franchise(s) will be reduced to $40,000. These reduced Initial Franchise Fees are conditioned on the prerequisite that you (and your affiliates) are in compliance with all franchise agreements and any other agreement between us (and our affiliates) and you (and your affiliates).
Pre-Sales and Soft Opening Retail Inventory Kit
Prior to opening your Studio, you must purchase the following from us: (i) opening inventory that includes branded apparel, including t-shirts, towels, exercise clothing and related accessories; and (ii) a pre-sales start-up package that typically includes (a) marketing and promotional items such as a branded EZ Up tent, feather flags and portable fitness and other exercise equipment to be utilized in conjunction with your pre-opening support program described below, and (b) branded apparel that is specific to the location of your Studio (collectively, the "Pre-Sales and Soft Opening Retail Inventory Kit"). The components will be determined in coordination with our team to ensure brand consistency and optimal product selection. The cost for the Pre-Sales Retail Package will be collected directly by the Retail team at the start of the Pre-Sales Phase, while the Soft Opening retail inventory cost will be included as a line item in the equipment invoice. While you currently purchase the Pre-Sales and Soft Opening Retail Inventory Kit from us, we may designate that you purchase it directly from a third-party Approved Supplier.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 36–37)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, Item 5 outlines the initial fees required to be paid under the Franchise Agreement. Specifically, it states that a franchisee must pay a $60,000 initial franchise fee to establish a single Bft studio. This fee is due upon signing the Franchise Agreement and is non-refundable under any circumstances.
Item 5 further specifies reduced initial franchise fees for existing Bft franchisees. If a franchisee already owns and operates a Bft studio, the initial franchise fee for their second franchise is reduced to $50,000. For those who own and operate at least two Bft studios, the fee for their third or subsequent franchises is further reduced to $40,000. These reductions are conditional on the franchisee being in compliance with all existing franchise and other agreements with Bft.
In addition to the initial franchise fee, franchisees are required to purchase a Pre-Sales and Soft Opening Retail Inventory Kit prior to opening their studio. This kit includes branded apparel, marketing, and promotional items. The costs associated with the Pre-Sales Retail Package are collected by the Retail team at the start of the Pre-Sales Phase, while the Soft Opening retail inventory cost is included as a line item in the equipment invoice. Bft retains the right to designate a third-party Approved Supplier for this kit in the future.