How often and in what manner is the Bft Fund Contribution typically paid?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
5.6 Fund Contribution. Franchisor (and its affiliates) have established a creative brand development fund to promote the System, Marks and brand with which the Studio is associated generally (the "Fund").
Franchisee shall contribute to the Fund, as directed by Franchisor from time to time, two percent (2%) of the Gross Sales of its Studio (the "Fund Contribution"), commencing once the Studio starts generating revenue from its business operations of its Studio.
The Fund Contribution will typically be paid in the same manner and at the same interval that the Royalty Fee is collected (based on the Gross Sales of the Studio over the immediately preceding reporting period).
Franchisor has the right, at any time and on notice to Franchisee, to change the amount of the Fund Contribution in accordance with Section 9.1 below.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees must contribute to the creative brand development fund, known as the "Fund," to promote the Bft system, marks, and brand. This contribution is set at two percent (2%) of the Gross Sales of the studio and commences once the studio begins generating revenue.
The Fund Contribution will typically be paid in the same manner and at the same interval as the Royalty Fee. This means that the frequency and method of payment for the Fund Contribution will mirror that of the Royalty Fee, which is based on the Gross Sales of the studio over the immediately preceding reporting period.
Bft retains the right to modify the Fund Contribution amount at any time, provided they give the franchisee notice, as described in Section 9.1 of the agreement. This clause indicates that while the contribution is typically collected in the same manner and interval as the royalty fee, Bft has the authority to change this arrangement.