When is the initial franchise fee due for a Bft franchise?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise Agreement
Initial Franchise Fee
You must pay to us a lump sum initial franchise fee of $60,000 (the "Initial Franchise Fee") to establish a single Studio under a Franchise Agreement. The Initial Franchise Fee is due upon the signing of the Franchise Agreement. The Initial Franchise Fee will be fully earned by us upon payment and is not refundable, in whole or in part, under any circumstance.
Separately, if you (or your affiliates) already own and operate a BFT Studio, then the Initial Franchise Fee for your second franchise will be reduced to $50,000. If you (or your affiliates) already own and operate at least two BFT Studios, then the Initial Franchise Fee for your third or subsequent franchise(s) will be reduced to $40,000. These reduced Initial Franchise Fees are conditioned on the prerequisite that you (and your affiliates) are in compliance with all franchise agreements and any other agreement between us (and our affiliates) and you (and your affiliates).
Pre-Sales and Soft Opening Retail Inventory Kit
Prior to opening your Studio, you must purchase the following from us: (i) opening inventory that includes branded apparel, including t-shirts, towels, exercise clothing and related accessories; and (ii) a pre-sales start-up package that typically includes (a) marketing and promotional items such as a branded EZ Up tent, feather flags and portable fitness and other exercise equipment to be utilized in conjunction with your pre-opening support program described below, and (b) branded apparel that is specific to the location of your Studio (collectively, the "Pre-Sales and Soft Opening Retail Inventory Kit"). The components will be determined in coordination with our team to ensure brand consistency and optimal product selection. The cost for the Pre-Sales Retail Package will be collected directly by the Retail team at the start of the Pre-Sales Phase, while the Soft Opening retail inventory cost will be included as a line item in the equipment invoice. While you currently purchase the Pre-Sales and Soft Opening Retail Inventory Kit from us, we may designate that you purchase it directly from a third-party Approved Supplier.
You are required to use certain of these items in coordination with the pre-opening sales plan we approve or designate for your Studio, which is designed to generate prospective Studio clientele and members and otherwise promote the Studio prior to opening (the "Opening Support Program"). We anticipate that you will begin pre-selling Studio memberships (the "Pre-Sales Phase") for approximately five (5) months before you open your Studio's doors to the general public for participation in regular classes in the physical premises of your Studio (the "Soft Opening").
The cost of the Pre-Sales and Soft Opening Retail Inventory Kit ranges from $14,000 to $18,000. This amount is non-refundable and is deemed fully earned upon payment.
Source: Item 5 — INITIAL FEES (FDD pages 18–21)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the initial franchise fee of $60,000 is due upon the signing of the Franchise Agreement. This fee grants the franchisee the right to establish a single Bft studio. The FDD specifies that this initial franchise fee is considered fully earned by Bft upon payment and is non-refundable under any circumstances.
Notably, the initial franchise fee may be reduced for existing Bft franchisees. If a franchisee already owns and operates a Bft studio, the initial franchise fee for their second franchise is reduced to $50,000. For franchisees who own and operate at least two Bft studios, the fee for their third or subsequent franchises is further reduced to $40,000. However, these reduced fees are conditional on the franchisee being in compliance with all existing franchise agreements and any other agreements with Bft.
In the event that a franchisee is purchasing an existing studio from another Bft franchisee and a franchise broker is owed a commission, the franchisee will pay Bft a sourcing fee of $30,000 in lieu of the initial franchise fee. This sourcing fee helps cover the commission owed to the broker. The FDD also outlines additional sourcing fees for existing franchisees who are purchasing additional franchises or development rights under a Multi-Unit Agreement based on a previously-made introduction to Bft or its affiliates. These sourcing fees vary depending on the number of additional studios the franchisee is acquiring rights for, ranging from $28,000 for a single additional franchise to $120,000 for the right to open ten or more studios under a Multi-Unit Agreement. Any applicable sourcing fee is due upon the signing of the Franchise Agreement and/or Multi-Unit Agreement and is non-refundable.