How does the pre-opening assistance provided by Bft in Item 11 relate to the franchisee's estimated initial investment, as detailed in Item 7?
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.
[Item 7: ESTIMATED INITIAL INVESTMENT]
Notes to Table A:
All amounts payable to us are non-refundable, unless otherwise noted. Amounts payable to suppliers/vendors are refunded according to arrangements you make with the vendor, if any. These figures are only estimates of the range of your initial costs during the development of your Studio, the Pre-Sales Phase, and the first three (3) months of operation after your Studio's Soft Opening. Leasing and financing is available for many of the above expenses. We do not offer direct or indirect financing, but we may assist you in obtaining working capital through other sources.
1 General. The initial investment table shows certain expenditures required to establish and operate a Studio. This Item 7 assumes and expects that (a) you will timely perform all pre-opening obligations and open and commence operations of your Studio within the time periods prescribed in your Franchise Agreement; and (b) you will develop and build your Studio in accordance with our specifications for Studios. The typical Studio will likely be approximately 2,400 to 2,800 square feet in size and be in a rectangular shape. All estimates listed in the table above exclude tax.
The Fundamentals Training Program is provided virtually to Franchisee and the individuals that attend the Pre-Opening Instructor Training. During such Pre-Opening Instructor Training, Franchisee will be pay Franchisor's then-current fee for Pre-Opening Instructor Training, which shall cover as many trainees as Franchisee is able to hire prior to Franchisor conducting the Pre-Opening Instructor Training, plus reasonable costs and expenses for the attendance of a head coach provided by Franchisor. Franchisee will also pay Franchisor's then-current fee for the Fundamentals Training Program, which is assessed per trainee, following the opening of the Studio.
Franchisor will not, under any circumstances, be responsible for, and the indemnities provided in Section 11.2 shall apply to, costs and expenses (including wages, benefits, and travel-related expenses) incurred by or owed to Franchisee or its personnel in or as a result of attending or participating in any training program described in this Agreement or otherwise provided by Franchisor or its designee.
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Item 11 outlines the pre-opening assistance Bft provides to franchisees, while Item 7 details the estimated initial investment required to establish and operate a Bft studio. Item 7 indicates that franchisees are expected to perform all pre-opening obligations in a timely manner and develop their studio according to Bft's specifications. The pre-opening assistance described in Item 11 supports franchisees in meeting these obligations, which directly impacts their ability to manage the costs outlined in Item 7 within the estimated timeframes. For example, Bft provides the franchisee (or their Operating Principal) and Designated Manager with the Owner/Operator Training Module and Designated Manager Training Module, respectively, which they need to complete prior to opening their studio.
Specifically, Item 11 states that Bft will provide access to a Learning Management System containing mandatory and suggested specifications, standards, and procedures, including a confidential operations manual. This assistance helps franchisees understand and adhere to Bft's requirements for studio build-out and operations, which is a key factor in managing the initial investment costs. The initial investment table in Item 7 assumes that the franchisee will develop and build their studio in accordance with Bft's specifications. The typical Bft studio is expected to be approximately 2,400 to 2,800 square feet in size and rectangular in shape.
Furthermore, Item 11 details the training programs offered, including the Initial Training Program, Designated Manager Training Module, Pre-Opening Instructor Training, and Fundamentals Training Program. These programs are designed to equip franchisees and their staff with the knowledge and skills necessary to operate the studio effectively from the outset. The costs associated with these training programs, such as fees for Pre-Opening Instructor Training and the Fundamentals Training Program, are separate from the initial franchise fee. Franchisees are also responsible for costs and expenses incurred by their personnel attending any training program provided by Bft. Therefore, the pre-opening assistance directly influences how well-prepared a franchisee is to manage their initial investment and operate the Bft studio according to the franchisor's standards.