When does a Bft franchisee begin paying the Royalty fee?

According to Bft's 2025 Franchise Disclosure Document, franchisees are required to start paying royalties once their studio begins collecting revenue from operations. The royalty fee is 7% of the gross sales generated by the studio over the relevant reporting period. These royalty payments are payable weekly via electronic funds transfer, based on the gross sales of the studio during the preceding business week. However, Bft retains the right to collect royalties on a different interval, such as monthly.

Gross sales include the total revenue generated by the studio, regardless of whether it complies with the Franchise Agreement or whether the revenue has actually been received. This includes revenue from the sale of gift cards, other products, and services. Gross sales exclude sales tax collected for governmental taxing authorities and allowances credited to clients in good faith for approved products or services.

Bft franchisees must participate in the franchisor's electronic funds transfer and reporting programs. All fees owed to Bft must be received or credited to their account by pre-authorized bank debit by 5:00 p.m. P.S.T. on or before the applicable due date. If a franchisee's studio is located in a jurisdiction that subjects Bft to tax assessments on royalty fees and fund contributions, the franchisee will be required to adjust their payment to account for these taxes.