How does the initial franchise fee for Bft in Item 5 relate to the franchisee's definition in Item 1?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
n>To simplify the language, this disclosure document (this "Disclosure Document") uses "we," "us," "our," "Franchisor" or "BFT" to mean BFT Franchise SPV, LLC, the franchisor. "You" means the person, corporation, partnership or other entity that buys the franchise and those of your owners who personally assume and guarantee performance of your obligations under your agreements with us. Terms used but not defined in this Disclosure Document (including various capitalized terms) have the meanings given to them in the Franchise Agreement attached as Exhibit A to this Disclosure Document (the "Franchise Agreement").
Franchisor
We do business under the name BFT Franchise SPV, LLC, or in some cases, simply as "BFT." We do not do business under any other name. Our principal business address is 17877 Von Karman Ave., Suite 100, Irvine, CA 92614, and our business phone number is (949) 346-3000. We are a Delaware limited liability company formed on March 6, 2023.
Except as provided in this Item, we have not and do not offer franchises in any other line of business and we have not otherwise been involved in other substantive business activity.
Predecessors and Internal Reorganization
BFT® franchises were first offered in 2020 by Body Fit Training USA Inc. ("Body Fit Training USA") who continued offering franchises for the brand until October 2021.
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the initial franchise fee is a one-time payment required to establish a single studio. Item 1 defines "you" as the person or entity (corporation, partnership, etc.) that purchases the Bft franchise, including owners who personally guarantee the obligations under the agreements with Bft. Therefore, the initial franchise fee is an obligation of the franchisee as defined in Item 1. The franchisee is responsible for paying Bft an initial franchise fee of $60,000 upon signing the Franchise Agreement.
Item 5 specifies that the initial franchise fee is fully earned by Bft upon payment and is non-refundable, in whole or in part, under any circumstance. This means that once the franchisee pays the $60,000, Bft is not obligated to return it, regardless of whether the franchise ever opens or succeeds. This is a standard practice in franchising, as the initial fee compensates the franchisor for the initial costs of granting the franchise, including training, site selection assistance, and brand development.
Notably, the initial franchise fee can be reduced for existing Bft franchisees. If a franchisee (or their affiliates) already owns and operates a Bft studio, the initial franchise fee for their second franchise is reduced to $50,000. If they own and operate at least two Bft studios, the fee for their third or subsequent franchises is further reduced to $40,000. These reductions are conditional on the franchisee (and their affiliates) being in compliance with all franchise agreements and other agreements with Bft.
In addition to the initial franchise fee, franchisees must also purchase a Pre-Sales and Soft Opening Retail Inventory Kit prior to opening their studio. This kit includes branded apparel, marketing and promotional items, and portable fitness equipment. The cost of this kit is separate from the initial franchise fee and is collected by the retail team at the start of the Pre-Sales Phase, with the soft opening retail inventory cost included as a line item in the equipment invoice. While franchisees currently purchase the Pre-Sales and Soft Opening Retail Inventory Kit from Bft, Bft may designate that franchisees purchase it directly from a third-party Approved Supplier.