How does Bft recognize variable fees related to the franchise?

According to Bft's 2025 Franchise Disclosure Document, variable fees are not estimated at the beginning of the franchise agreement. Instead, Bft recognizes these fees as revenue when they are invoiced to the franchisee, which occurs on a monthly basis. This approach applies to fees generated from the franchise license, including development, royalty, marketing, technology, and transfer fees.

This means that a Bft franchisee's financial obligations for these variable fees will be determined and billed each month based on actual activity or performance. This contrasts with fixed fees, which are determined upfront. The FDD specifies that Bft's franchise agreements typically operate under ten-year terms, with options to renew for up to two additional five-year successor terms, but the company determined the renewal options are neither qualitatively nor quantitatively material and do not represent a material right.

For a prospective franchisee, this implies that budgeting for these fees will require close monitoring of monthly invoices and understanding the factors that influence the variable fee amounts. It also suggests that Bft does not offer financing components within its franchise agreements.