What outstanding financial obligations would prevent a Bft franchise transfer?

According to Bft's 2025 Franchise Disclosure Document, several financial obligations must be met to facilitate a franchise transfer. Specifically, all monies owed by the franchisee or its affiliates to Bft, its affiliates, and all suppliers to the studio must be paid in full. This encompasses any outstanding debts, fees, or other financial liabilities that the franchisee has accumulated over the course of operating the Bft studio.

This requirement ensures that Bft maintains financial integrity and that any new franchisee is not burdened with the previous owner's debts. It also protects Bft's suppliers by ensuring they receive payment for goods and services provided to the studio. Failure to settle these outstanding financial obligations will prevent the transfer of the Bft franchise to a new owner.

In addition to settling outstanding debts, the franchisee must also pay a transfer fee to Bft, although in some cases, such as a transfer to a wholly-owned entity or immediate family member, an administrative fee applies instead. If a franchise broker is owed a commission in connection with the purchase of the Bft studio, the proposed transferee must pay Bft a sourcing fee of $30,000. These fees cover Bft's costs associated with processing the transfer and ensuring the new franchisee meets the brand's standards. Meeting all financial obligations is a prerequisite for Bft to approve the franchise transfer.