What is the relationship between Mark King's business experience, as detailed in Item 2, and the estimated initial investment required for a Bft franchise, as detailed in Item 7?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
The estimates in this Item 7 are based on: (i) our franchisee's experience in developing Studios using the resources that we make available to them; (ii) our and our Predecessor's experience in selling franchises for Studios; (iii) the experience of our Affiliate SPV Franchisors and Affiliate Prior Franchisors in developing other fitness concepts and information related to their respective studio investment costs; (iv) current estimates we have received from our Approved Suppliers and other third-party vendors; and (v) our affiliates' experience in developing and/or operating Studios and franchises of other Xponential Brands. The availability and terms of financing available to you will depend on factors such as the availability of financing in general, your creditworthiness, the collateral security that you may have, and the policies of lending institutions concerning the type of business you operate. This estimate does not include any finance charges, interest, or debt service obligations.
B. Multi-Unit Agreement (Using Example of Franchise Award to Develop 3 Studios)
What This Means (2025 FDD)
According to the 2025 FDD, Item 2 provides details on the business experience of Mark King, the Chief Executive Officer of Bft. Item 7 outlines the estimated initial investment required to open a Bft franchise. However, the FDD does not explicitly connect Mark King's experience to the specific figures in the initial investment estimate.
While the FDD does not directly link Mr. King's experience to the estimated initial investment, it does state that the estimates in Item 7 are based on several factors. These factors include the experience of Bft franchisees, the company's experience in selling franchises, the experience of affiliates in developing other fitness concepts, current estimates from approved suppliers, and the affiliates' experience in developing and operating studios and franchises of other Xponential Brands. The FDD also notes that a franchisee's management skill, experience, and business acumen can impact their actual costs.
Therefore, while Mark King's leadership as CEO is part of the overall business context, the FDD does not provide information on how his specific experience directly influences or is reflected in the estimated initial investment figures. A prospective franchisee may want to ask Bft how the leadership team's experience is leveraged to support franchisees in managing their initial investment and achieving profitability.