If the Bft advertising fund contribution decreases, can Bft reduce its contribution from company-owned studios?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Our company-owned or affiliate-owned Studios, if and when operating, are not required to contribute to the Fund at the same rate as franchisees. As of the date of this Disclosure Document, all franchisees that contribute to the Fund may not contribute at the same rate as you. Should the Fund Contribution for the System decrease at any time, we have the right to reduce our contribution from company-owned or affiliate-owned Studios to the rate specified for franchised locations.
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, if the advertising fund contribution decreases for the system, Bft has the right to reduce its contribution from company-owned or affiliate-owned studios to the rate specified for franchised locations. This means that Bft's company-owned studios are not necessarily required to contribute to the fund at the same rate as franchisees.
This policy could impact franchisees if the advertising fund decreases. If Bft reduces its contribution from company-owned studios, the overall funds available for marketing and promotion could be reduced. This could potentially lead to less advertising and promotional activity, which could affect the visibility and growth of individual Bft studios.
It's important for prospective franchisees to understand that Bft has the discretion to adjust contributions from its own studios based on changes to the overall fund contribution rate. Franchisees should consider the potential implications of this policy on the advertising fund and the marketing support they can expect to receive. Franchisees may want to inquire about the circumstances under which Bft would reduce its contribution and how this might affect the allocation of advertising funds.