Is Bft franchisor or its affiliates allowed to be an approved supplier for items used in Bft studios?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- F. Franchisor Rights. Franchisee acknowledges and agrees that Franchisor and certain of its affiliates are (or may at any time in future become) an approved, designated, or sole supplier for certain fitness equipment, other equipment, products, logo items, signage and artwork, and other items and services used or sold in BFT Studios; that Franchisor and such affiliates may derive income from the sale of such items, and that the prices charged by Franchisor or such affiliates may reflect an ordinary and reasonable
B. Required Use of Approved Suppliers. Franchisee may, at its option, designate, mandate or approve suppliers (which may include Franchisor and its affiliates) of all equipment, gear, merchandise, apparel, supplies, and other assets used in the development and operation of Franchisee's Studio. Franchisee agrees to purchase all such items only approved or designated suppliers and maintain all such items according to manufacturer or Franchisor specifications. Franchisor and its affiliates may, at their option, collect from Franchisee some or all payments, fees, and expenses for and associated with such items and pay the suppliers directly on Franchisee's behalf. If Franchisor elects to do so, Franchisee agrees that Franchisor or its affiliates may auto-debit Franchisee's bank account for such amounts in the same manner and using the same authorization that Franchisee grants Franchisor with respect to payment of Royalty Fees
and other fees. Franchisor and its affiliate may derive revenue or obtain other consideration from suppliers based on purchases that Franchisee makes, and Franchisor and its affiliates may use such revenue or consideration without restriction.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft and its affiliates can be approved, designated, or sole suppliers for items used or sold in Bft studios. This includes fitness equipment, other equipment, products, logo items, signage, artwork, and other items and services. Bft and its affiliates may also derive income from these sales, and the prices charged may reflect a reasonable profit.
Bft franchisees may designate, mandate, or approve suppliers for equipment, gear, merchandise, apparel, supplies, and other assets used in the development and operation of their studios, which can include Bft and its affiliates. Franchisees must purchase these items only from approved or designated suppliers and maintain them according to Bft's specifications.
Bft and its affiliates have the option to collect payments from franchisees for these items and pay the suppliers directly. If Bft chooses to do so, they can auto-debit the franchisee's bank account for these amounts, similar to how royalty fees are paid. Bft and its affiliates may also receive revenue or other consideration from suppliers based on franchisee purchases, which they can use without restriction.
This arrangement means that Bft franchisees may be required to purchase certain items from Bft or its affiliates, potentially impacting their costs and supplier choices. However, it also ensures that the studio maintains consistent standards and quality, as Bft can control the types of equipment and supplies used. Prospective franchisees should consider the potential financial implications and the level of control Bft has over the supply chain when evaluating the franchise opportunity.