When do Bft franchisees begin contributing to the Brand Development Fund?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Contributions to Brand Development Fund 2 | Currently, 2% of Gross Sales 1 | Payable weekly around the same time and in the same manner as the Royalty | Your contributions (the “Fund Contributions”) to the Brand Development Fund (the “Fund”) will begin when your Studio begins generating revenue from operations. We may, on notice to you, adjust the amount of your required Fund Contributions, subject to the Marketing Expenditure Cap. 3 |
Source: Item 6 — OTHER FEES (FDD pages 21–26)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees are required to contribute to the Brand Development Fund starting when their studio begins generating revenue from operations. These contributions are currently set at 2% of gross sales.
The Brand Development Fund is used for various purposes, including product development, marketing, advertising, public relations, and other activities to promote the Bft brand. Bft retains sole discretion over all matters relating to the fund.
These contributions are payable weekly, around the same time and in the same manner as royalty payments, which are also based on a percentage of gross sales. It's important to note that Bft may adjust the amount of required fund contributions with notice to the franchisee, but these adjustments are subject to a marketing expenditure cap. The marketing expenditure cap ensures that the total required marketing contributions, including the Brand Development Fund, regional or local advertising co-ops, and local advertising, do not exceed 7% of gross sales per month.