For what purposes may Bft use the amounts received from suppliers?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
als from franchisees to add new suppliers if we believe that approval would not be in the best interests of the System.
We and/or our affiliates may receive payments or other compensation from Approved Suppliers or any other suppliers on account of these suppliers' dealings with us, you, or other Studios in the System, such as rebates, commissions or other forms of compensation, which may comprise of fixed payments and/or percentages of overall sales transactions. During the fiscal year 2024, we received $154,772 in allowances, rebates, or other consideration from vendors in connection with purchases by franchisees, which constituted 6.3% of our total revenue of $2,447,103 during the year, and our Predecessor received $594,663 in similar allowances, rebates, and other consideration. Additionally, Xponential received $6,837,252 in allowances, rebates, or other consideration from vendors in connection with purchases by franchisees of all Xponential Brands in the U
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–36)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft has broad discretion over the use of payments received from suppliers. Bft and its affiliates may receive compensation from approved suppliers in the form of rebates, commissions, or other payments, which may be fixed or based on a percentage of sales transactions.
The FDD states that Bft "may use any amounts that we receive from suppliers for any purpose that we deem appropriate." This means Bft is not obligated to use these funds in any specific way that directly benefits franchisees, such as lowering franchise fees or investing in marketing.
In fiscal year 2024, Bft received $154,772 in allowances, rebates, or other consideration from vendors, which constituted 6.3% of their total revenue of $2,447,103. Additionally, Xponential received $6,837,252 in allowances, rebates, or other consideration from vendors related to purchases by franchisees across all Xponential brands in the United States and Canada. The fact that Bft highlights the amounts received by its predecessor and Xponential suggests that these types of payments from suppliers are a significant revenue stream within the Bft franchise system. Prospective franchisees should be aware that these supplier payments are not earmarked for specific uses and contribute to Bft's general revenue.