Does Bft offer direct financing to franchisees?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
As part of the Reorganization, our direct parent, XPOF Assetco, LLC ("Assetco"), was created. As described in Item 21 of this Disclosure Document, Assetco guarantees our obligations as franchisor. Assetco's current direct parent is Xponential Fitness, LLC ("Xponential"). Xponential, via an intermediate holding company, is controlled by Xponential Fitness, Inc. ("XFI"), which is a publicly traded company listed on the New York Stock Exchange under the symbol "XPOF." We anticipate that, if a Financing Opportunity occurs, it would be conducted by newly created indirect parents (immediately upstream of Assetco) and that our and Assetco's only involvement in the Financing Opportunity would be to guarantee the obligations of our newly created indirect parents who are involved in the transaction. We expect that guarantee would cause the leverage ratio of debt to "Adjusted EBITDA" of Xponential and its subsidiaries (including us) to increase in an amount not determinable unless and until the details of the Financing Opportunity are determined. "Adjusted EBITDA" means EBITDA (net income/loss before
interest, taxes, depreciation and amortization), adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing operating performance.
Source: Item 10 — FINANCING (FDD page 37)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the excerpts provided do not contain information regarding whether Bft offers direct financing to franchisees. The document does mention potential "Financing Opportunities" in the context of Bft's parent entities, but it does not specify if this includes direct financing options for franchisees. The FDD outlines the corporate structure, including parent companies like XPOF Assetco, LLC and Xponential Fitness, Inc., and discusses potential future funding and financing opportunities at the parent level. However, it remains unclear whether these opportunities extend to providing direct financial assistance to franchisees.
While the FDD details the roles and responsibilities of the franchisor and franchisee, along with various fees and costs associated with opening a Bft studio, it does not explicitly address financing options. The document does mention that Assetco guarantees Bft's obligations as a franchisor, and discusses potential increases in the leverage ratio of debt to "Adjusted EBITDA" of Xponential and its subsidiaries if a Financing Opportunity occurs. However, this information pertains to the parent company's financial activities and does not clarify whether Bft itself provides direct financing to franchisees.
Therefore, a prospective Bft franchisee should directly inquire with the franchisor about the availability of direct financing options. Specifically, they should ask about any programs or arrangements Bft has in place to assist franchisees with funding the initial investment or ongoing operational costs. This would include clarifying the terms and conditions of any potential financing, such as interest rates, repayment schedules, and eligibility requirements. Understanding the financing options available is crucial for making an informed decision about investing in a Bft franchise.