When do Fund Contributions become payable for a Bft Studio?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
The Fund was established to promote Studios and help promote and develop our System and brand generally. As of the date of this Disclosure Document, your Fund Contribution is two percent (2%) of your Studio's Gross Sales. Fund Contributions will be payable from the earlier of (a) the date your Studio opens, or (b) the date the Studio receives a payment from a client in connection with Approved Services to be provided at any point. We may increase the Fund Contribution upon 60 days' written notice to you, subject to the Marketing Expenditure Cap (Franchise Agreement, Sections 5.6 and 9.1).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 37–50)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees must begin paying into the Brand Development Fund from the earlier of two dates: either when the studio opens or when the studio receives payment from a client for approved services. The Fund contribution is currently set at two percent (2%) of the studio's Gross Sales.
This means a new Bft franchisee needs to be prepared to allocate 2% of their gross sales to the Brand Development Fund as soon as they start generating revenue, even before the official studio opening if clients are paying for services beforehand. This contribution supports the promotion and development of the Bft brand and system.
Bft retains the right to increase the Fund contribution with 60 days' written notice to franchisees, although this is subject to a Marketing Expenditure Cap as detailed in the Franchise Agreement. The Brand Development Fund is administered by Bft (or its affiliates) and may be used for regional and national advertising, brand development, and related technology. A Fund advisory committee (FAC) serves in an advisory capacity on Fund-related matters, but Bft has sole discretion over advertising and promotions.