How often are Bft franchisees' marketing fees collected by the Company?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisees are required to pay marketing fees of 2% of their gross sales. The marketing fees are collected by the Company on a monthly basis and are to be used for the advertising, marketing, market research, product development, public relations programs and materials deemed appropriate to benefit brands. The Company's promise to provide the marketing services funded through the marketing fund is considered a component of the Company's performance obligation to grant the franchise license. The Company bills and recognizes marketing fund fees as revenue each month as gross sales occur. Marketing fund expenses are recorded as incurred, which may not occur in the same period as the recognition of franchise marketing fund revenue.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees are required to pay marketing fees equivalent to 2% of their gross sales. These marketing fees are collected by Bft on a monthly basis. The collected fees are designated for advertising, marketing, market research, product development, and public relations programs and materials that Bft deems appropriate for the benefit of the brand.
This monthly collection of marketing fees means that franchisees need to ensure they have sufficient cash flow to cover this expense regularly. It also implies that Bft actively manages and utilizes these funds for the purposes outlined, which franchisees should monitor to ensure effective marketing strategies are being implemented.
Franchisees should be aware that while the marketing fees are collected monthly, the actual expenses incurred by Bft for marketing activities may not coincide with the same period. This could lead to fluctuations in the marketing fund balance, which Bft may invest for future use or borrow against to cover deficits.