Can Bft franchisor and its affiliates derive income from the sale of 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 profit consistent with a business of the kind that produces and/or supplies such items. Franchisee acknowledges and agrees that Franchisor and its affiliates may sell products and services to members located anywhere, even if such products and services are similar to what Franchisor sells to Franchisee and what Franchisee offers at its Studio. Franchisor and its affiliates may use the internet or alternative channels of commerce to sell products and services, including those identified by the Marks. Franchisee may only sell the products and services from the Studio's approved location and may only use the internet or alternative channels of commerce, as permitted by Franchisor, in order to register members for approved classes. Nothing in the foregoing shall prohibit Franchisee from obtaining members over the Internet provided Franchisee's internet presence and content comply with the requirements of this Agreement.
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 indeed derive income from the sale of items used or sold in Bft studios. Bft, along with its affiliates, may be 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.
This arrangement allows Bft and its affiliates to profit from these sales, and the prices charged may reflect a reasonable profit margin. Furthermore, Bft and its affiliates can sell products and services to members, even if those offerings are similar to what franchisees sell at their studios. They can also use the internet or alternative channels to sell these products and services, including those identified by the Bft marks.
For a prospective franchisee, this means that they may be required to purchase certain items from Bft or its affiliates, potentially at prices that include a profit for the franchisor. While this could ensure consistency across the Bft brand, it may also limit the franchisee's ability to source cheaper alternatives. It is important for potential franchisees to understand the extent to which they are obligated to purchase supplies from Bft and to evaluate the competitiveness of those prices.