What is the low and high range for the Bft initial franchise fee?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure 1 | Low Amount | High Amount | Method of Payment | When Due | To Whom Payment Is to be Made |
|---|---|---|---|---|---|
| Initial Franchise Fee 2 | $60,000 | $60,000 | Lump sum by certified check or bank wire | At signing of Franchise Agreement | Us |
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 or subsequent Studio, this Initial Franchise Fee will be reduced to $40,000.
Additionally, if you are an existing franchisee and a franchise broker is owed a commission in connection with the purchase of your additional franchise based on a previously-made introduction to us or our affiliates, you will pay us an additional sourcing fee of $28,000 (in addition to the Initial Franchise Fee).
2 Development Fee. The Development Fee is payable to us and is non-refundable. The actual amount of the Development Fee will depend on the number of Studios you agree to develop under the Development Schedule because the Development Fee is equal to $10,000 times the number of Studios you agree to open, less one. The number of Studios required to be open under a Multi-Unit Agreement is an agreed upon number (typically, at least 3 Studios). If your Multi-Unit Agreement requires that you open 3 Studios, your Development Fee will be 2 x $10,000, or $20,000. For each additional Studio you are required to open under your Development Schedule, your Development Fee will increase by $10,000. While the Development Fee is not a deposit, we will apply it, in $10,000 increments, toward satisfaction of the initial franchise fee due under each Franchise Agreement (less the first one) that you sign in satisfaction of your obligations under the Multi-Unit Agreement.
Additionally, if you are an existing franchisee and a franchise broker is owed a commission in connection with the purchase of your Development Rights under a Multi-Unit Agreement based on a previouslymade introduction to us or our affiliates, you will pay us an additional sourcing fee as follows: (i) if you acquire Development Rights under a Multi-Unit Agreement for the right to open two (2) additional Studios, then the
sourcing fee will be $40,000 (in addition to your Development Fee); (ii) if you acquire Development Rights under a Multi-Unit Agreement for the right to open three (3) to five (5) Studios, then the sourcing fee will be $50,000 (in addition to your Development Fee); (iii) if you acquire Development Rights under a Multi-unit Agreement for the right to open six (6) to nine (9) Studios, then the sourcing fee will be $84,000 (in addition to your Development Fee); and (iv) if you acquire Development Rights under a Multi-Unit Agreement for the right to open ten (10) or more Studios, then the sourcing fee will be $120,000 (in addition to your Development Fee).
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the initial franchise fee for a single studio is $60,000. However, this fee can be reduced to $50,000 if it is the franchisee's second studio, and further reduced to $40,000 for the third or subsequent studio. The initial franchise fee is non-refundable.
For franchisees entering into a Multi-Unit Agreement, a Development Fee is required. This fee is calculated as $10,000 multiplied by the number of studios the franchisee agrees to develop, minus one. For example, if a franchisee agrees to open three studios, the Development Fee would be $20,000. This fee is also non-refundable but is applied in increments of $10,000 toward the initial franchise fee for each subsequent franchise agreement, excluding the first one.
Additionally, Bft charges a sourcing fee under certain circumstances. If an existing franchisee is purchasing an additional franchise and a franchise broker is owed a commission due to a previous introduction, the franchisee will pay Bft a sourcing fee of $28,000 in addition to the initial franchise fee. For Multi-Unit Agreements, the sourcing fee varies depending on the number of studios to be developed, ranging from $40,000 to $120,000, in addition to the Development Fee. These sourcing fees are applicable when a franchise broker is owed a commission for the Multi-Unit Agreement based on a prior introduction.