How does the pre-opening assistance offered by Bft in Item 11 relate to the franchisee's ability to secure financing, as mentioned in Item 10?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]
ITEM 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING
Except as listed below, we are not required to provide you with any assistance.
A. Pre-Opening Assistance
Franchise Agreement
Before your Studio's Soft Opening:
We will provide you (or, if you are an entity, your Operating Principal), as well as your Designated Manager (if appointed) of your Studio, with our proprietary Owner/Operator Training Module and Designated Manager Training Module, respectively, that at least you (or, if appropriate, your Operating Principal) will need to complete prior to opening your Studio (the "Initial Training Program").
We will typically provide the Initial Training Program within the thirty (30) days prior to your Studio opening, but that timing will be subject to the availability and schedules of our training personnel.
We will provide the Initial Training Program at our corporate headquarters or other training facility we designate, which may be virtually (Franchise Agreement, Article 5).
We will also provide you or another individual you designate as your prospective Authorized Instructor with our Pre-Opening Instructor Training as described more fully below in this Item (Franchise Agreement, Section 5.5).
If the Authorized Location for your Studio has not been identified at the time the Franchise Agreement is signed, we will work with you to designate a geographical area within which you must secure an Authorized Location for your Studio ("Designated Market Area") (Franchise Agreement, Section 1.2).
Prior to you attending your required initial training, we will provide you access to the Learning Management System, which contains mandatory and suggested specifications, standards and procedures.
The Learning Management System is confidential and remains our property.
We may modify the Learning Management System. (Franchise Agreement, Section 6.3).
Within the Learning Management System, you will be provided our confidential operations manual (comprised of four sub-manuals), which currently comprises approximately 151 pages.
The Table of Contents of our operations manual is attached to this Disclosure Document as Exhibit F.
What This Means (2025 FDD)
Based on the 2025 FDD, Item 11 details the pre-opening assistance Bft provides to franchisees. This includes providing the Owner/Operator Training Module and Designated Manager Training Module to the franchisee or operating principal and the designated manager, respectively. This training is typically provided within 30 days prior to the studio opening and can be conducted at Bft's corporate headquarters, a designated training facility, or virtually. Bft also provides Pre-Opening Instructor Training to the franchisee or a designated individual to become an authorized instructor.
Additionally, Bft assists in designating a geographical area for the franchisee to secure an authorized location for their studio if the location hasn't been identified when the Franchise Agreement is signed. Franchisees also gain access to Bft's Learning Management System, which contains mandatory and suggested specifications, standards, and procedures, including a confidential operations manual. This comprehensive pre-opening support aims to equip franchisees with the knowledge and resources necessary to launch their Bft studio effectively.
While Item 11 outlines the specific pre-opening assistance Bft offers, it does not directly address how this assistance relates to a franchisee's ability to secure financing, as mentioned in Item 10. Item 10 of the FDD would typically cover the obligations of the franchisee, including initial and ongoing fees. To understand how Bft's pre-opening assistance might aid in securing financing, a prospective franchisee should inquire directly with Bft about whether lenders view this training and support favorably when evaluating loan applications. Franchisees should also ask Bft for data or testimonials from existing franchisees who have successfully obtained financing, highlighting any specific aspects of the pre-opening assistance that lenders found valuable.