Regarding Bft franchises, do the financial performance representations reflect the costs of sales, operating expenses, or other costs or expenses?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
The financial performance representations do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit. You should conduct an independent investigation of the costs and expenses you will incur in operating your Studio. Franchisees or former franchisees, listed in the Franchise Disclosure Document, may be one source of this information.
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 financial performance representations provided do not reflect costs of sales, operating expenses, or other costs or expenses. This means that the gross revenue or gross sales figures presented in the financial performance representations do not account for any deductions.
For a prospective Bft franchisee, this is a critical point to understand. The figures presented are only gross numbers, and a franchisee must deduct all applicable costs and expenses to determine their net income or profit. These costs can include, but are not limited to, the cost of goods sold, rent, utilities, salaries, marketing expenses, and franchise fees.
Bft recommends that prospective franchisees conduct an independent investigation of the costs and expenses they will incur while operating their studio. The FDD suggests that current and former franchisees, whose contact information is listed in the document, may be a valuable source of information for understanding these costs. It is essential for potential franchisees to perform thorough due diligence to accurately estimate their potential profitability.