Which items in the Bft Disclosure Document discuss Bft's advertising and fund?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in | |||
|---|---|---|---|---|
| Section in Franchise Agreement | Multi-Unit Agreement | Disclosure Document Item | ||
| Territorial development and | Sections 8.7 and 15.1.B(12) | Sections 2.C and 2.D, Exhibit A | Item 12 | |
| k. | ||||
| sales quotas | ||||
| Ongoing product/service | Sections 6.5 and 8.4 | Not Applicable | Items 8 and 11 | |
| l. | ||||
| purchases | ||||
| Maintenance, appearance and | Sections 7.1 and 8.1 | Not Applicable | Items 6 and 17 | |
| m. | ||||
| remodeling requirements | ||||
| n. Insura nce | Sections 10.5 and 15.1.B(8) | Not Applicable | Items 6, 7 and 8 | |
| o. Adve rtising and Fund | Article 9, Sections 5.6 and 15.1.B(5) | Not Applicable | Items 6 and 11 |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 37–50)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Item 11 and Item 6 contain information regarding advertising and the advertising fund. Specifically, Item 11 details the franchisor's assistance, advertising, computer systems, and training programs. Item 6 generally discusses other fees that a franchisee may be required to pay.
Item 11 outlines the Brand Development Fund, which is used to promote Bft studios and the brand in general. Franchisees contribute 2% of their studio's gross sales to this fund. Bft has the right to increase this contribution with 60 days written notice, but it is subject to a Marketing Expenditure Cap. The fund is administered by Bft (or its affiliates) and an advisory committee. The funds are used for regional and national advertising, brand development, and related technology. Bft has sole discretion over advertising and promotions, and these activities are paid for from the fund.
During the fiscal year ended December 31, 2024, Bft allocated the fund contributions as follows: 9.8% for production, 58.5% for administration and implementation, 7.7% on media and public relations, and 24.0% for Internet and digital-related activities. Bft is not obligated to spend fund contributions equally across all studios or in any specific area. Franchisees are required to participate in all fund programs and may be required to pay for the production, shipping, and handling of marketing materials.