What is the range of initial franchise fees for Bft, depending on the number of studios purchased?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
marketing fees, technology fees and transfer fees, which are discussed further below. Variable fees are not estimated at contract inception, and are recognized as revenue when invoiced, which occurs monthly. The Company has concluded that its agreements do not contain any financing components.
Franchise development fee revenue – The Company's franchise agreements typically operate under ten-year terms with the option to renew for up to two additional five-year successor terms. The Company determined the renewal options are neither qualitatively nor quantitatively material and do not represent a material right. Initial franchise fees are non-refundable and are typically collected upon signing of the franchise agreement. Initial franchise fees are recorded as deferred revenue when received and are recognized on a straight-line basis over the franchise life, which the Company has determined to be ten years, as the Company fulfills its promise to grant the franchisee the rights to access and benefit from the Company's intellectual property and to support and maintain th
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to the 2025 FDD, Bft offers area development agreements that allow a developer to secure a territory and develop a certain number of franchise locations over a specified time. The initial franchise fee varies depending on the number of studios purchased under either franchise agreements or area development agreements.
The initial franchise fee for a single Bft studio is $60,000. For those purchasing multiple studios under an area development agreement, the initial franchise fee ranges from $60 to $350. It is important to note that the FDD does not specify the exact fee for purchasing between 2 and 9 studios, only providing the end points of the range.
These fees are paid to Bft upon signing the area development agreement. Bft initially records these area development fees as deferred revenue, which is then allocated to each studio purchased under the agreement. The revenue is recognized on a straight-line basis over the franchise life for each studio. Development and franchise fees are generally recognized as revenue upon the termination of the development agreement with the franchisee.