What is the relationship between the initial franchise fee for Bft in Item 5 and the estimated initial investment range provided in Item 7?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 5: INITIAL FEES]
ITEM 5 INITIAL FEES
Franchise Agreement
Initial Franchise Fee
You must pay to us a lump sum initial franchise fee of $60,000 (the "Initial Franchise Fee") to establish a single Studio under a Franchise Agreement. The Initial Franchise Fee is due upon the signing of the Franchise Agreement. The Initial Franchise Fee will be fully earned by us upon payment and is not refundable, in whole or in part, under any circumstance.
Separately, if you (or your affiliates) already own and operate a BFT Studio, then the Initial Franchise Fee for your second franchise will be reduced to $50,000. If you (or your affiliates) already own and operate at least two BFT Studios, then the Initial Franchise Fee for your third or subsequent franchise(s) will be reduced to $40,000. These reduced Initial Franchise Fees are conditioned on the prerequisite that you (and your affiliates) are in compliance with all franchise agreements and any other agreement between us (and our affiliates) and you (and your affiliates).
[Item 7: ESTIMATED INITIAL INVESTMENT]
| Type of Expenditure 1 | Low Amount | High Amount | Method of Payment | When Due | To Whom Payment Is to be Made |
|---|---|---|---|---|---|
| Initial Franchise Fee 2 | $60,000 | $60,000 | Lump sum by certified check or bank wire | At signing of Franchise Agreement | Us |
| Sourcing Fee2 | $0 | $28,000 | Lump sum by certified check or bank wire | At signing of Franchise Agreement | Us |
| Travel & Living | $0 | $2,500 | As arranged | As incurred | Transportation |
| Expenses While | Carriers, Hotel | ||||
| Training 3 | Facilities, Etc. | ||||
| Real Estate/Lease 4 | $37,000 | $75,500 | As arranged | As incurred | Landlord; Attorneys; Accountants |
| Net Leasehold Improvements (Net of Estimated Tenant Improvement Allowances) 5 | $72,000 | $560,500 | As arranged | As incurred | Approved Suppliers (Third Party), Architects and Contractors |
| Signage 6 | $8,000 | $37,000 | As arranged | As incurred | Approved Suppliers (Third Party) and Vendors |
| Insurance 7 | $5,017 | $9,826 | As arranged | Before Opening | Approved Suppliers (Third Party) |
| Fitness Equipment & Initial FF&E Package 8 | $198,500 | $236,000 | As required | Before Opening | Us |
| Pre-Sales and Soft Opening Retail Inventory Kit 9 | $14,000 | $18,000 | Lump Sum | Before Opening | Us |
| Audio / Visual | $38,500 | $38,500 | As arranged | As arranged | Approved |
| Package, Computer | Suppliers (Third | ||||
| System, and Related | Party) and | ||||
| Components 10 | Vendors | ||||
| Initial Marketing & Advertising Spend 11 | $36,800 | $50,200 | As arranged | As arranged | Approved Suppliers (Third Party) and Vendors |
| Initial Instructor | $5,000 | $5,000 | As arranged | As arranged | Us |
| 12 | |||||
| Training Fee | |||||
| Type of Expenditure 1 | Low Amount | High Amount | Method of Payment | When Due | To Whom Payment Is to be Made |
| ----------------------------------------------- | --------------- | ---------------- | ---------------------- | ------------- | ------------------------------------------------ |
| Technology and Software Fees 13 | $5,019 | $5,019 | As arranged | As arranged | Us and Approved Suppliers (Third- Party) |
| Additional Funds – 3 months 14 | $30,000 | $78,000 | As arranged | As incurred | Employees, Vendors, Utilities |
| TOTAL ESTIMATED INITIAL INVESTMENT | $509,836 | $1,204,045 |
| 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 | |
| Initial Investment to Open | $509,836 to | See Table A of this Item 7 | ||
| Initial Studio 4 | $1,204,045 | |||
| TOTAL ESTIMATED INITIAL INVESTMENT | $529,836 to $1,274,045 | This is the total estimated initial investment to enter into a Multi-Unit Agreement for the right to develop three (3) total franchised Studios, as well as the costs to open and commence operating your initial Studio for the first three (3) months, as described more fully in Table A of this Item 7. See Note 3. |
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the initial franchise fee is a component of the total estimated initial investment required to open a Bft studio. Item 5 specifies that the initial franchise fee for a single Bft studio is $60,000, payable as a lump sum upon signing the Franchise Agreement. This fee is non-refundable and is considered fully earned by Bft upon payment. However, the initial franchise fee may be reduced to $50,000 for a second franchise or $40,000 for a third or subsequent franchise, provided the franchisee is in compliance with all agreements.
Item 7 provides a detailed breakdown of the estimated initial investment, which includes the initial franchise fee. For a single studio, the initial investment ranges from $509,836 to $1,204,045. The initial franchise fee of $60,000 is listed as a separate line item within this range. This means that the initial franchise fee contributes to the overall cost of starting a Bft franchise but is only one part of the total investment. Other significant costs include real estate/lease expenses ($37,000 to $75,500), net leasehold improvements ($72,000 to $560,500), fitness equipment and initial FF&E package ($198,500 to $236,000), and initial marketing and advertising spend ($36,800 to $50,200).
For franchisees considering a multi-unit agreement, the initial investment structure is different. The total estimated initial investment for a multi-unit agreement to develop three studios ranges from $529,836 to $1,274,045. This includes a development fee of $20,000 and a sourcing fee ranging from $0 to $50,000, in addition to the costs to open and operate the initial studio. The initial franchise fee for the first studio under the multi-unit agreement is incorporated within the initial investment range detailed in Table A of Item 7. Prospective franchisees should carefully review all components of the initial investment to understand the full financial commitment required to start and operate a Bft franchise.