Is the initial franchise fee for a Bft franchise refundable?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
in a rectangular shape. All estimates listed in the table above exclude tax.
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
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to the 2025 FDD, the initial franchise fee for a single Bft studio is non-refundable. The standard initial franchise fee is $60,000. However, the FDD notes that if a franchisee is opening their second Bft studio, the initial franchise fee is reduced to $50,000. For a third or subsequent studio, the initial franchise fee is further reduced to $40,000.
This non-refundable policy means that once the Franchise Agreement is signed and the fee is paid to Bft, the franchisee cannot get this money back, even if they later decide not to open the studio. This is a fairly standard practice in franchising, as the initial fee covers Bft's administrative and initial support costs in setting up the franchise.
In addition to the initial franchise fee, the FDD states that all amounts payable to Bft are non-refundable unless otherwise noted. This means that other fees paid directly to Bft, such as the development fee for multi-unit agreements, are also generally non-refundable. Franchisees should carefully consider their financial situation and commitment before signing the Franchise Agreement and paying any fees to Bft.