If a Bft Multi-Unit Agreement requires opening 3 Studios, what is the Development Fee?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
hree (3) months of operating the initial Studio you are granted under your Multi-Unit Agreement only.
2 Development Fee. The Development Fee is payable to us and is non-refundable. The actual amount of the Development Fee will depend on the number of Studios you agree to develop under the Development Schedule because the Development Fee is equal to $10,000 times the number of Studios you agree to open, less one. The number of Studios required to be open under a Multi-Unit Agreement is an agreed upon number (typically, at least 3 Studios). If your Multi-Unit Agreement requires that you open 3 Studios, your Development Fee will be 2 x $10,000, or $20,000. For each additional Studio you are required to open under your Development Schedule, your Development Fee will increase by $10,000. While the Development Fee is not a deposit, we will apply it, in $10,000 increments, toward satisfaction of the initial franchise fee due under each Franchise Agreemen
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the Development Fee for a Multi-Unit Agreement requiring the opening of 3 Studios is $20,000. The Development Fee is calculated based on the number of Studios a franchisee agrees to develop under the Development Schedule. The fee is equal to $10,000 times the number of Studios agreed to open, less one.
For a Multi-Unit Agreement that requires opening 3 Studios, the Development Fee is calculated as 2 x $10,000, which equals $20,000. This fee is payable to Bft and is non-refundable. The Development Fee is not a deposit, but Bft will apply it in $10,000 increments toward satisfaction of the initial franchise fee due under each Franchise Agreement (less the first one) that the franchisee signs to fulfill their obligations under the Multi-Unit Agreement.
In addition to the Development Fee, a franchisee may also be required to pay a sourcing fee if a franchise broker is owed a commission in connection with the purchase of Development Rights under a Multi-Unit Agreement. If the Multi-Unit Agreement is for the right to open three to five Studios, the sourcing fee is $50,000, which is in addition to the Development Fee. The total estimated initial investment to enter into a Multi-Unit Agreement for the right to develop three total franchised Studios, as well as the costs to open and commence operating the initial Studio for the first three months, ranges from $529,836 to $1,274,045.