What is the Measurement Period used by Bft to calculate the Membership Attrition Rate?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
The chart above reflects the average monthly Membership Attrition Rate during the Measurement Period (i.e., January 1, 2024 to December 31, 2024) for the 29 Qualified Studios.
We calculated the average monthly Membership Attrition Rate as follows: (a) we calculated the Membership Attrition Rate for each calendar month during the Measurement Period for each such Qualified Studio by calculating the percentage of members that cancelled their memberships in a particular calendar month at each such Qualified Studio; then (b) we calculated an annual Membership Attrition Rate for each such Qualified Studio by determining a weighted average of each such Qualified Studio's Membership Attrition Rate for the twelve months during the 2024 calendar year by allocating weight to the particular month's Membership Attrition Rate based on the number of members that such Qualified Studio had during that month (for example, if a Qualified Studio had 200 members as of January 31, 2024 and had 300 members as of February 29, 2024, the Qualified Studio's Membership Attrition Rate for February 2024 was weighted 1.5 times greater than the Qualified Studio's Membership Attrition Rate for January 2024, as a 300 membership base is 1.5 times greater than a 200 membership base); then (c) we calculated a simple average of all such Qualified Studios' weighted average monthly Membership Attrition Rate to determine the average Monthly Membership Attrition Rate for all 29 Qualified Studios noted above. We also show the range and median of Monthly Membership Attrition Rates for such Qualified Studios.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 67–75)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the Measurement Period used to calculate the average monthly Membership Attrition Rate for the 29 Qualified Studios was from January 1, 2024, to December 31, 2024.
Bft defines "Membership Attrition Rate" as the number of cancelled studio memberships during a particular calendar month divided by the number of studio members at the end of the prior respective calendar month. The FDD details how Bft calculated the average monthly Membership Attrition Rate, which involved calculating the Membership Attrition Rate for each calendar month during the Measurement Period for each Qualified Studio. Then, Bft calculated an annual Membership Attrition Rate for each Qualified Studio by determining a weighted average of each studio's monthly attrition rate, giving more weight to months with a larger membership base. Finally, Bft calculated a simple average of all the Qualified Studios' weighted average monthly Membership Attrition Rates to determine the overall average.
For a prospective Bft franchisee, understanding the Membership Attrition Rate and its calculation is crucial for financial planning and operational strategies. A higher attrition rate may indicate issues with member satisfaction, service quality, or marketing effectiveness, requiring the franchisee to focus on retention strategies. Conversely, a lower attrition rate suggests a stable membership base and potentially higher profitability. The franchisee should analyze the factors contributing to attrition and implement measures to mitigate membership cancellations and maintain a healthy membership base.