factual

Does Bft require franchisees to obtain approval for their Opening Support Program?

Bft Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee agrees and acknowledges that Franchisee must: (i) develop the foregoing plan in coordination with the opening support program designated by Franchisor that is designed to generate prospective Studio clientele and members and otherwise promote the Studio prior to the Soft Opening (the "Opening Support Program"); (ii) obtain Franchisor's prior approval of the plan and all Pre-Sales Phase activities; and (iii) incur and promptly pay all fees and costs associated with the Opening Support Program and other Pre-Sales Phase activities as and when such amounts become due.

  • E. Opening Support Program.

Franchisee must also expend all required amounts that Franchisor prescribes or otherwise approves as part of Franchisee's Pre-Sales Phase plan, including any amounts due to Franchisor's approved supplier for the Opening Support Program.

Source: Item 23 — RECEIPTS (FDD pages 79–265)

What This Means (2025 FDD)

According to Bft's 2025 Franchise Disclosure Document, franchisees are required to obtain the franchisor's approval for their Opening Support Program. Specifically, franchisees must develop a plan in coordination with the opening support program designated by Bft, aimed at generating clientele and promoting the studio before its soft opening. This plan and all pre-sales phase activities are subject to Bft's prior approval.

This requirement means that franchisees cannot independently decide on their pre-opening marketing strategies. They must work with Bft's designated program and get approval for their specific plans. This ensures that all franchisees adhere to Bft's standards and strategies for launching a new studio.

Furthermore, franchisees are responsible for covering all costs associated with the Opening Support Program and other pre-sales activities. Bft also requires franchisees to expend all required amounts that Bft prescribes or approves as part of the franchisee's Pre-Sales Phase plan, including any amounts due to Bft's approved supplier for the Opening Support Program. This financial obligation underscores the importance of carefully reviewing the costs and budget associated with the pre-opening phase. Franchisees should seek clarity on these costs during their due diligence to avoid unexpected financial burdens.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.