What is the relationship between Assetco and Bft?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Attached to this Disclosure Document as Exhibit C are Assetco's audited financial statements which comprise the balance sheets as of December 31, 2024 and 2023, and related statements of operations, changes in member's equity, and cash flows and the related notes to the financial statements for the year ended December 31, 2024 and for the period from March 6, 2023 to December 31, 2023. Assetco was formed in March 2023, and therefore, is unable to provide three years of financial statements. We are a wholly-owned subsidiary of Assetco, and Assetco absolutely and unconditionally guarantees to assume our duties and obligations under the Franchise Agreements and Multi-Unit Agreements entered into while we are the wholly owned subsidiary of Assetco. A copy of the Assetco guarantee is attached as Exhibit D.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, XPOF Assetco, LLC ("Assetco") is the direct parent of BFT Franchise SPV, LLC, the franchisor. Bft is a wholly-owned subsidiary of Assetco. This means that Assetco owns and controls Bft. As part of an internal reorganization in March 2023, Assetco was created as the direct parent of Bft. Xponential Fitness, LLC is the direct parent of Assetco, and Xponential Fitness, Inc. controls Xponential Fitness, LLC.
Assetco provides an absolute and unconditional guarantee to assume Bft's duties and obligations under the Franchise Agreements and Multi-Unit Agreements while Bft remains a wholly-owned subsidiary of Assetco. This guarantee is included as Exhibit D in the FDD. The guarantee ensures that Bft will fulfill its obligations to franchisees.
Assetco's audited financial statements, including balance sheets as of December 31, 2024 and 2023, statements of operations, changes in member's equity, and cash flows, along with related notes, are attached to the Disclosure Document as Exhibit C. These financial statements provide insight into Assetco's financial health and its ability to support Bft's obligations. Because Assetco was formed in March 2023, three years of financial statements are not available.