How are 'New Memberships' defined for a Bft studio, and are they included in the 'Active Members' count?

According to Bft's 2025 Franchise Disclosure Document, 'New Memberships' are defined as the total number of new studio members who signed a studio membership agreement in a particular calendar month. This metric is important for Bft franchisees as it directly reflects the studio's ability to attract new customers and grow its membership base. The FDD uses this definition in Item 19 to present data on the financial performance of new and qualified studios. This allows prospective franchisees to understand the potential for membership growth in their own studios.

Importantly, the FDD states that 'New Memberships' are included in the number of 'Active Members' for that particular calendar month. 'Active Members' are defined as studio members who were party to an effective studio membership agreement at the conclusion of the calendar month. This means that the 'Active Members' count represents the total number of paying members at the end of the month, including those who signed up during that month. This inclusion provides a comprehensive view of the studio's current membership status and its revenue-generating capacity.

For a prospective Bft franchisee, understanding these definitions is crucial for interpreting the financial performance representations provided in Item 19. By knowing how 'New Memberships' and 'Active Members' are calculated, franchisees can better assess the potential revenue and growth trajectory of their studio. They can also use this information to benchmark their studio's performance against the averages and medians presented in the FDD, helping them identify areas for improvement and make informed business decisions.