What is the minimum amount a Bft franchisee must spend each month on local advertising?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
uthorized under this Agreement.
9.2 Initial Marketing Spend; Local Marketing Activities.
- A. Initial Marketing Spend. Franchisee must spend a minimum of $15,000 (the "Initial Marketing Spend") in connection with the initial sales and marketing activities set forth in connection with (i) Franchisee's approved Opening Support Program, and (ii) other marketing and promotional activities that Franchisor approves or designates. Franchisor may also require that Franchisee expend all or any portion of the Initial Marketing Spend on initial marketing/advertising and/or public relations materials or services that are purchased from an approved supplier. The Initial Marketing Spend will not count towards Franchisee's local advertising expenditure requirements provided in Section 9.2.B below and is not subject to the Marketing Expenditure Cap.
- B. Local Advertising Requirement. Franchisee is responsible for local advertising and marketing activities to attract members to the Studio. Franchisee must spend the greater of (a) $1,500, or (b) two percent (2%) of Gross Sales each per month on approved local advertising and marketing activities (excluding agency and vendor fees) designed to promote the Studio within the Designated Territory (the "Local Advertising Requirement"). Franchisor may increase the Local Advertising Requirement, at its discretion, from time to time during the Term, subject to the Marketing Expenditure Cap. Upon Franchisor's written request, Franchisee must provide Franc
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees are required to engage in local advertising and marketing activities to attract members to their studio. The minimum amount a Bft franchisee must spend each month on local advertising is the greater of $1,500 or 2% of gross sales. These expenditures must be on approved local advertising and marketing activities, excluding agency and vendor fees, designed to promote the studio within the designated territory.
Bft retains the right to increase the local advertising requirement during the term of the agreement, but this is subject to a "Marketing Expenditure Cap." Franchisees must provide Bft with an accounting of all local advertising expenditures, along with supporting documentation, upon written request.
It's important to note that Bft has the authority to approve all advertising and promotional materials before they are used. This ensures that all advertising aligns with Bft's standards and brand image. Franchisees must adhere to these advertising standards and obtain written approval from Bft for all materials. Bft also retains the right to revoke approval of any advertising materials at any time.