Is Bft obligated to spend advertising fund dollars equally across all studios?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
We are not obligated to ensure that Fund activities or dollars are spent equally, on a pro rata basis, either on your Studio, or all Studios in an area. A brief statement regarding the availability of System franchises may be included in advertising and other items produced using the Fund, but we do not otherwise expect to use the Fund primarily for any franchise sales or solicitations as of the date of this Disclosure Document.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 37–50)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft is not obligated to ensure that advertising fund dollars are spent equally across all studios. The advertising fund, which franchisees contribute 2% of their gross sales to, is administered by Bft (or its affiliates) at their discretion. Bft also has the power to form, change, or dissolve a Fund advisory committee (FAC) to assist in matters related to the Fund.
Bft directs all public relations, advertising, and promotions with sole discretion over the message, creative concepts, materials, and media used in the programs, including the placement and allocation thereof. This means that Bft has the authority to decide how the fund is spent and is not required to allocate it equally among all franchisees.
This discretion allows Bft to focus advertising efforts where they believe it will be most effective for the brand as a whole, which may not necessarily benefit each individual studio equally. For a prospective franchisee, this means that while they contribute to the fund, they may not see a direct or proportional benefit in their specific location. It is important for franchisees to understand that the fund is used for the overall benefit of the Bft system, and the allocation of resources is at the discretion of Bft.