How are the Music Licensing 4 Fees determined for a Bft franchise?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
e terms that are applied to your first site selection. |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Music Licensing 4 Fee | Amounts charged by the providers and/or applicable performing rights organizations (PROs) for such music licensing | As invoiced or otherwise agreed | We may require that the music licensing fee (the "Music Licensing Fee") amount be paid directly to performing rights organizations (PROs) or to our then-current Approved Supplier (which may be us or our affiliate) that handles and manages these licenses for System franchisees. |
| Insurance Policies 5 | Amount of unpaid premium | As agreed | Payable only if you fail to maintain required insurance coverage and we elect to obtain coverage for you. |
Source: Item 6 — OTHER FEES (FDD pages 21–26)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the Music Licensing Fee is determined by the amounts charged by the providers and/or applicable performing rights organizations (PROs) for such music licensing. These fees are due as invoiced or otherwise agreed upon. Bft may require that the franchisee pay the Music Licensing Fee directly to performing rights organizations (PROs) or to Bft's then-current Approved Supplier (which may be Bft or its affiliate) that handles and manages these licenses for System franchisees.
Bft assumes that franchisees will directly clear music with ASCAP, BMI, SESAC, and GMR and that they do not play music in their Studio from any other performing rights organizations. If a Bft franchisee chooses to obtain music clearances from an approved vendor, they may incur higher prices than direct payments to the performing rights organizations.
In practical terms, a prospective Bft franchisee should budget for these music licensing fees, understanding that the cost can vary based on the music played and the chosen method of obtaining licenses. It is important to clarify with Bft whether direct payment to PROs is required or if an approved vendor must be used, as this can impact the overall cost. Franchisees should also be aware of the potential for higher costs if opting for an approved vendor instead of direct payments to PROs.