What is the high end of the estimated sourcing fee for a Bft franchise?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
NITIAL INVESTMENT**
A. Franchise Agreement
| Type of Expenditure 1 | Low Amount | High Amount | Method of Payment | When Due | To Whom Payment Is to be Made |
|---|---|---|---|---|---|
| Initial Franchise Fee 2 | $60,000 | $60,000 | Lump sum by certified check or bank wire | At signing of Franchise Agreement | Us |
| Sourcing Fee2 | $0 | $28,000 | Lump sum |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the sourcing fee can vary. For a single Bft studio, the high end of the sourcing fee is $28,000. This fee is in addition to the initial franchise fee and is applicable if an existing franchisee owes a commission to a franchise broker for introducing them to Bft or its affiliates. This fee is paid as a lump sum via certified check or bank wire upon signing the Franchise Agreement.
For franchisees acquiring development rights under a Multi-Unit Agreement, the sourcing fee can reach up to $120,000, depending on the number of studios they commit to developing. Specifically, if a franchisee acquires the rights to open two additional studios, the sourcing fee is $40,000. For three to five studios, it's $50,000; for six to nine studios, it's $84,000; and for ten or more studios, it's $120,000. These fees are also in addition to the Development Fee.
It's important for prospective Bft franchisees to understand these potential sourcing fees, as they can significantly increase the initial investment. Franchisees should clarify with Bft whether a sourcing fee applies to their specific situation, especially if they have worked with a franchise broker or are considering a multi-unit development agreement. Understanding these costs upfront is crucial for accurate financial planning and ensuring a smooth entry into the Bft franchise system.