For Bft franchises, how long must a franchisee maintain financial information relating to the Studio?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that its financial records shall be accurate and up-to-date at all times.
Franchisee agrees to promptly furnish any and all financial information, including tax records and returns, relating to the Studio to Franchisor on request.
- 10.2 Right to Conduct Audit or Review. Franchisor shall have the right, in its sole determination, to require a review by such representative(s) as Franchisor shall choose, of all information pertaining to the Studio, including financial records, books, tax returns, papers, and business management software programs of Franchisee, at any time during normal business hours without prior notice for the purpose of accurately tracking unit and System-wide sales, sales increases or decreases, effectiveness of advertising and promotions, and for other reasonable business purposes.
Such review will take place at the Studio or Franchisee's head office (if different), or both, and Franchisee agrees to provide all information pertaining to the Studio requested by Franchisor during its review.
If (a) the audit is conducted because of a failure by Franchisee to furnish reports, supporting records or other required information or to furnish the reports and information on a timely basis, or (b) the audit otherwise reveals an underreporting of two percent (2%) or more by Franchisee, then Franchisee shall reimburse Franchisor for all costs of the audit or review including, without limitation, travel, lodging, wage expense and reasonable accounting and legal expense.
The foregoing remedies shall be in addition to any other remedies Franchisor may have under this Agreement or applicable law.
- 10.3 Computer System and Software. Franchisee must acquire a computer for use in the operation of the Studio, as well as any audio-visual equipment Franchisor specifies.
Franchisee agrees to record all of its receipts, expenses, invoices, member lists, class schedules and other business information required by Franchisor from time to time promptly in the computer system and use the software that Franchisor specifies or otherwise approves.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, Bft franchisees must ensure their financial records are accurate and up-to-date at all times. Franchisees are required to promptly provide any financial information, including tax records and returns, related to the Studio upon Bft's request.
Bft retains the right to conduct audits or reviews of all information pertaining to the Studio, including financial records, books, tax returns, papers, and business management software programs, at any time during normal business hours without prior notice. This audit aims to accurately track unit and System-wide sales, sales increases or decreases, the effectiveness of advertising and promotions, and for other reasonable business purposes. The review can occur at the Studio or the franchisee's head office.
If an audit is triggered by the franchisee's failure to furnish reports or if the audit reveals an underreporting of 2% or more, the franchisee is responsible for reimbursing Bft for all audit costs, including travel, lodging, wage, accounting, and legal expenses. Franchisees must also acquire a computer for use in the operation of the Studio and record all receipts, expenses, invoices, member lists, class schedules, and other business information required by Bft in the specified computer system and software.