factual

When is the Bft initial franchise fee due?

Bft Franchise · 2025 FDD

Answer from 2025 FDD Document

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

Notes to Table A:

2 Initial Franchise Fee. The Initial Franchise Fee is non-refundable. The Initial Franchise Fee for a single Studio is $60,000. We do not provide financing for the Initial Franchise Fee. As provided in Item 5, if this is your (or your affiliates') second Studio, the Initial Franchise Fee will be reduced to $50,000, and if this is your (or your affiliates') third or subsequent Studio, this Initial Franchise Fee will be reduced to $40,000.

Type of Expenditure 1 Amount Method of Payment When Due To Whom
Payment Is to be Made
Development Fee 2 $20,000 Lump sum by certified check or bank wire At signing of the Multi- Unit Agreement Us

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 Agreement (less the first one) that you sign in satisfaction of your obligations under the Multi-Unit Agreement.

Additionally, if you are an existing franchisee and a franchise broker is owed a commission in connection with the purchase of your additional franchise based on a previously-made introduction to us or our affiliates, you will pay us an additional sourcing fee of $28,000 (in addition to the Initial Franchise Fee).

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 26–32)

What This Means (2025 FDD)

According to Bft's 2025 Franchise Disclosure Document, the initial franchise fee, which ranges from $60,000, is due at the signing of the Franchise Agreement. The payment must be made via a lump sum using a certified check or bank wire. This fee is payable to Bft.

It's important to note that this initial franchise fee is non-refundable. However, the FDD indicates that the initial franchise fee may be reduced for existing franchisees opening additional studios. Specifically, the initial franchise fee will be reduced to $50,000 if it is the franchisee's second studio, and to $40,000 for the third or subsequent studios.

For franchisees entering into a Multi-Unit Agreement, a Development Fee of $10,000 per studio (less one) is required. This fee is also due at signing of the Multi-Unit Agreement. While the Development Fee is not a deposit, 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 you sign in satisfaction of your obligations under the Multi-Unit Agreement. Additionally, existing franchisees may be required to pay a sourcing fee if a franchise broker is owed a commission in connection with the purchase of their additional franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.