Does the Bft initial investment estimate consider the experience of Affiliate SPV Franchisors and Affiliate Prior Franchisors in developing other fitness concepts?

According to Bft's 2025 Franchise Disclosure Document, the initial investment estimate does take into account the experience of Affiliate SPV Franchisors and Affiliate Prior Franchisors in developing other fitness concepts. Specifically, the estimates in Item 7 are based on several factors, including the experience of Bft's Affiliate SPV Franchisors and Affiliate Prior Franchisors in developing other fitness concepts and information related to their respective studio investment costs. This suggests that Bft has considered the financial experiences of related entities in the fitness industry when determining the estimated initial investment for a new Bft franchise.

For a prospective franchisee, this is beneficial because the initial investment estimate is not solely based on Bft's direct experience but also incorporates a broader range of knowledge from affiliated fitness concepts. This may provide a more realistic and comprehensive view of the potential costs involved in establishing a Bft studio. However, it is important to note that the success and cost efficiency of these affiliated concepts may vary, and their experiences might not directly translate to the franchisee's specific situation.

The FDD also mentions that the initial investment estimates are based on the franchisee's experience in developing studios using the resources Bft makes available, Bft's experience in selling franchises, current estimates from approved suppliers and third-party vendors, and Bft's affiliates' experience in developing and/or operating studios and franchises of other Xponential Brands. These multiple sources of information should give potential franchisees a more rounded and reliable estimate, but it remains crucial for franchisees to conduct their own due diligence and seek professional advice to assess the financial feasibility of the franchise.

Ultimately, while Bft incorporates affiliate experience into its initial investment estimates, prospective franchisees should still carefully evaluate all factors, including local economic conditions, management skills, and competition, to determine their actual costs. They should also consult with financial advisors and conduct thorough market research to ensure they are prepared for the financial demands of opening and operating a Bft franchise.