What is the minimum number of Bft Franchises that a multi-unit developer must commit to acquiring under the Multi-Unit Agreement?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Multi-Unit Agreement, the minimum number of Franchises you may commit to acquiring is three. For each Franchise you acquire pursuant to the Multi-Unit Agreement, you (or your affiliate) will sign our then-current form of Franchise Agreement. When you sign the Multi-Unit Agreement, you will also sign your 1st Franchise Agreement in the form attached to this Disclosure Document as Exhibit A. Each subsequent Franchise Agreement you sign will be our then-current form, and it might contain terms that are materially different than those found in our current form, including with respect to fees.
You will be required to pay us a one-time development fee that will be calculated based on the number of Studios you commit to develop under the Multi-Unit Agreement (the "Development Fee").
Source: Item 1 — THE FRANCHISOR, ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–12)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, a multi-unit developer who enters into a Multi-Unit Agreement with Bft must commit to acquiring a minimum of three franchises. This agreement grants the developer the rights to open multiple Bft franchise locations within a specific geographic area, known as the Development Area, according to a Development Schedule.
For each franchise acquired under the Multi-Unit Agreement, the developer (or their affiliate) will be required to sign Bft's then-current form of Franchise Agreement. Notably, the initial Franchise Agreement is signed concurrently with the Multi-Unit Agreement. However, subsequent Franchise Agreements may differ materially from the initial one, particularly concerning fees, as they will reflect Bft's most current terms at the time of signing.
In addition to the franchise agreements, Bft requires the multi-unit developer to pay a one-time development fee. This fee is calculated based on the total number of Bft studios the developer commits to opening under the Multi-Unit Agreement. This upfront investment is a crucial consideration for prospective multi-unit developers, as it directly correlates with the scale of their planned expansion within the Bft franchise system.