What is the range of the Sourcing Fee for a Bft Multi-Unit Agreement?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure 1 | Amount | Method of Payment | When Due | To Whom |
|---|---|---|---|---|
| Payment Is to be Made | ||||
| Development Fee 2 | $20,000 | Lump sum by certified check or bank wire | At signing of the Multi- Unit Agreement Us | |
| Sourcing Fee 3 | $0 to $50,000 | Lump sum by certified check or bank wire | At signing of the Multi- Unit Agreement. Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the sourcing fee for a Multi-Unit Agreement ranges from $0 to $50,000. This fee is paid as a lump sum by certified check or bank wire at the signing of the Multi-Unit Agreement and is payable to Bft.
Note 3 in Item 7 clarifies that this sourcing fee applies if you are an existing franchisee and a franchise broker is owed a commission for introducing you to Bft or its affiliates in connection with the purchase of your Development Rights under a Multi-Unit Agreement. The amount of the sourcing fee depends on the number of additional studios you are entitled to open under the agreement.
Specifically, if the Multi-Unit Agreement grants you the right to open two additional studios, the sourcing fee is $28,000. If the agreement allows you to open three to five studios, the fee is $50,000. For six to nine studios, it increases to $84,000, and for ten or more studios, the sourcing fee is $120,000. This fee is in addition to the Development Fee, which is calculated separately based on the number of studios you agree to develop.