What is the purpose of the Sourcing Fee Addendum for Bft franchisees?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
putes between the Guarantors and Franchisor. The Guarantors shall reimburse Franchisor for all costs and expenses it incurs in connection with enforcing the terms of this Guarantee.
IN WITNESS WHEREOF, each of the undersigned has signed this Guarantee as of the Effective Date.
| GUARANTOR(S) | SPOUSE(S) |
|---|---|
| Name: | Name: |
| Sign: | Sign: |
| Address: | Address: |
| Email Address: | Email Address: |
| Name: | Name: |
| Sign: | Sign: |
| Address: | Address: |
| Email Address: | Email Address: |
EXHIBIT L-1
FRANCHISE AGREEMENT SOURCING FEE ADDENDUM
EXHIBIT L-1 FRANCHISE AGREEMENT SOURCING FEE ADDENDUM (BFT)
| THIS SOURCING FEE ADDENDUM | (this "Sourcing Fee Addendum") is made and entered into by |
|---|---|
| and between | BFT FRANCHISE SPV, LLC, a Delaware limited liability company with its principal business |
| address at 17877 Von Karman Ave., | Suite 100 Irvine, CA 92614 ("Franchisor"), and |
| , whose principal business address is | |
| ("Franchisee"). | |
| 1. , 20 Sourcing Fee Addendum. This Sourcing Fee the Franchise Agreement. Terms not otherwise defined in this Sourcing Fee defined in the Franchise Agreement. This Sourcing Fee Agreement. | Background. Franchisor and Franchisee are parties to that certain Franchise Agreement dated (the "Franchise Agreement") that has been signed concurrently with the signing of this Addendum supersedes any inconsistent or conflicting provisions of Addendum have the meanings as Addendum is annexed to and forms part of the Franchise |
| 2. Agreement). effective as of the Effective Date of the Franchise Agreement. | Sourcing Fee. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the Sourcing Fee Addendum addresses situations where a franchisee owes a commission to a third-party franchise broker due to a prior introduction to Bft or its affiliates. This addendum is attached to and becomes part of the Franchise Agreement.
The Sourcing Fee Addendum outlines that if a franchisee currently operates an existing Bft studio and was connected to the franchisor through a third-party broker, the franchisee must pay a non-refundable sourcing fee of $28,000. This fee is in addition to the initial franchise fee required under the Franchise Agreement and is due upon the execution of the Franchise Agreement.
In summary, the Sourcing Fee Addendum ensures that Bft franchisees who were sourced through a third-party broker are obligated to pay a sourcing fee of $28,000 to compensate for the initial introduction. This fee is non-refundable and separate from the initial franchise fee.