What happens if a Bft franchisee fails to meet the Performance Standards?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee fails to meet the Minimum Monthly Gross Sales Quota at any time during the Term, Franchisor, at its sole discretion, may institute a mandatory corrective training program upon written notice to Franchisee. Franchisee will be obligated, at its expense, to participate in and implement all temporary and permanent corrective measures that Franchisor requires to address the Performance Standards not achieved.
- (12) Franchisee fails to (i) comply with the Performance Standards as set forth in Section 8.7 of this Agreement and fails to participate in and implement all temporary and permanent corrective measures mandated by Franchisor to address such non-compliance, (ii) comply with System Standards for cleanliness, customer service, equipment maintenance, and any other System Standards which effect or enhance the member experience at the Studio, or (iii) achieve the Minimum Monthly Gross Sales Quota described in Section 8.7 during any trailing 36-month period, regardless of its participation in any corrective training programs mandated by Franchisor; or
If Franchisor determines that Franchisee is operating the Studio in a manner that is not consistent with the terms of this Agreement or the Learning Management System, or if Franchisee is otherwise in material default of this Agreement, Franchisor may also require that Franchisee, its Designated Manager (if applicable) and/or certain Authorized Instructors of the Studio attend and complete up to five (5) additional days of training at (a) Franchisor's designated training facility, (b) the Studio, or (c) other location Franchisor designates, that is designed to address the default or other noncompliance issue (the "Remedial Training").
Franchisor may require Franchisee and its designated trainees to pay Franchisor its then-current Training Fee in connection with attending Remedial Training.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, if a franchisee fails to meet the Minimum Monthly Gross Sales Quota at any time during the Term, Bft may, at its discretion, require the franchisee to participate in a mandatory corrective training program. Bft will provide written notice to the franchisee, who will then be obligated to participate in and implement all temporary and permanent corrective measures that Bft requires to address the unmet Performance Standards, and the franchisee will bear the expense of these measures.
Furthermore, the FDD states that failure to comply with the Performance Standards, as outlined in Section 8.7 of the agreement, and failure to participate in and implement the corrective measures mandated by Bft, can lead to further consequences. Similarly, failing to meet System Standards for cleanliness, customer service, equipment maintenance, or any other System Standards that affect the member experience at the Studio, or failing to achieve the Minimum Monthly Gross Sales Quota during any trailing 36-month period, regardless of participation in corrective training programs, can also result in penalties.
Bft also provides for remedial training if it determines that a franchisee is not operating the Studio in accordance with the franchise agreement or the Learning Management System, or if the franchisee is in material default of the agreement. In such cases, Bft may require the franchisee, their Designated Manager (if applicable), and/or certain Authorized Instructors to attend up to five additional days of training. This Remedial Training may take place at Bft's designated training facility, the Studio, or another location designated by Bft, and is designed to address the specific default or noncompliance issue. Bft may also require the franchisee and its designated trainees to pay a then-current Training Fee for attending Remedial Training.