If a Bft franchisee chooses not to personally supervise the Studio, can they appoint a Designated Manager?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
those ideas, etc. without compensation or other obligation.
ITEM 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
Under the Franchise Agreement, we recommend, but do not require, that you (or, if you are an entity, the Operating Principal) personally supervise the Studio. You may appoint a Designated Manager we approve to manage daily operations of your Studio. We will not unreasonably withhold our approval of any Designated Manager you propose, provided the individual has successfully completed the Designated Manager Training Module and, if that individual will be providing any Approved Services, the Pre-Opening Instructor Training and Fundamentals Training Program. Once approved, your Designated Manager may assist in the direct, day-to-day supervision of the operations of the Studio, or to be the on-premises supervisor if you choose not to personally supervise the Studio. If you are a business entity, your Designated Manager need not hold an ownership interest in the business to be the on-premises supervisor.
You will keep us advised, in writing, of any Designated Manager involved in the operation of the Studio and their contact information. Your Studio must, at all times, be managed by and staffed with at least one (1) individual who has successfully completed the Owner/Operator Training Module.
You and your managers and employees must comply with the confidentiality provisions described in Item 14. If you are a legal entity, having more than one owner, all owners, shareholders, partners, joint venturers, and any other person who directly or indirectly owns a 10% or greater interest in the Studio (and each such person's spouse) must execute a Guarantee.
ITEM 16 RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL
You must offer for sale and sell, only and all those Approved Products and Approved Services, and deal only with those Approved Suppliers, that we authorize or require. Principally, this means you must purchase the amount and type of equipment, including all fitness apparatuses and exercise equipment, and offer only those types of fitness and exercise classes that we authorize. Failure to comply with our purchasing restrictions may result in the termination of your Franchise Agreement. We may supplement, revise and/or modify our Approved Products and/or Approved Services as we deem appropriate, as well as our System Standards associated with the provision of these products/services. These changes will be outlined in our Learning Management System or otherwise in writing, and there are no contractual limitations on our right to make these types of changes.
You must ensure that only Authorized Instructors who have completed all required training are those that provide the classes and other Approved Services at your Studio. No other individuals may conduct such classes or provide any Approved Services.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 56–57)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, while it is recommended that a franchisee or operating principal personally supervise the studio, it is not required. A franchisee can appoint a Designated Manager, subject to Bft's approval, to manage the daily operations. Bft will not unreasonably withhold approval, provided the manager completes the Designated Manager Training Module and, if providing approved services, the Pre-Opening Instructor Training and Fundamentals Training Program. The Designated Manager can then assist in or take over the direct, day-to-day supervision of the studio if the franchisee chooses not to be personally involved. If the franchisee is a business entity, the Designated Manager does not need to hold an ownership interest.
The franchisee must keep Bft informed in writing of any Designated Manager's involvement and their contact information. At least one individual managing the studio must have completed the Owner/Operator Training Module. If a franchisee (or one of its Operating Principals) is not or does not intend to be on-site at the Studio during normal business hours to manage the day-to-day operations of its Studio (including, for example, where Franchisee owns or is affiliated with owners of multiple open BFT Studios), then Franchisee must appoint a "Designated Manager" for the Studio who will be responsible for the day-to-day operation of, and only for, the Studio. Each Designated Manager must attend and complete, to Franchisor's satisfaction, Franchisor's designated manager training program prior to assuming the Designated Manager responsibilities.
This flexibility allows Bft franchisees who may have other business interests or who cannot be present at the studio regularly to still operate the franchise by delegating management responsibilities to an approved Designated Manager. However, the franchisee remains responsible for ensuring that the Designated Manager is properly trained and that Bft is informed of their involvement. This arrangement ensures that the Bft studio is always under the supervision of a qualified individual, maintaining the standards of the franchise system. The franchisor does not charge a Training Fee for Franchisee's initial Designated Manager's participation in the Designated Manager Training Program.
If Bft 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.