Is Bft required to spend any amount on advertising within a franchisee's Designated Territory?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Requirement is only the minimum amount you must spend each month, and we encourage you to spend additional amounts on the local promotion of your Studio. We are not required to spend any amount on advertising within your Designated Territory.
We have not yet established any local or regional Co-Op(s). We may, in the future, decide to form one or more associations and/or sub-associations of Studios to conduct various marketing-related activities on a cooperative basis. If one or more Co-Ops (local, regional and/or national) are formed covering your Authorized Location, then you must join and actively participate. You may be required to contribute such amounts as are determined by such Co-Ops, subject to the Marketing Expenditure Cap (Franchise Agreement, Section 9.4).
You must provide us with written notice if the Required Marketing exceeds the Marketing Expenditure Cap, and until we receive your Marketing Notice, you must comply with the Required Marketing requirements, and no excess amounts will be refunded to you. If the Required Marketing exceeds the Marketing Expenditure Cap, you may, after we receive your Marketing Notice, reduce the Local Advertising Requirement, but only to the extent and for the time necessary to stay below the Marketing Expenditure Cap. You must immediately return to full compliance with Required Marketing once the Marketing Expenditure Cap is no longer exceeded.
Initial Marketing Requirement; Opening Support Program
In addition to the Local Advertising Requirement, you will be required to spend a minimum of $15,000 in connection with pre-opening sales activities and other initial launch promotional activities designed to increase visibility of your Studio within your Designated Territory.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 37–50)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft is not required to spend any amount on advertising within a franchisee's designated territory. However, the franchisee is obligated to spend a minimum amount on local advertising.
Specifically, the franchisee must spend the greater of $1,500 or 2% of Gross Sales each month on marketing and advertising materials to promote their studio within their designated territory. These expenditures exclude agency and vendor fees and require Bft's approval. Bft may periodically increase this local advertising requirement, subject to a Marketing Expenditure Cap.
The franchisee must provide Bft with an accounting of their monthly advertising expenditures, including invoices and supporting documentation, upon request. While the stated amount is the minimum required, Bft encourages franchisees to spend additional funds on local promotion. Franchisees must also provide written notice to Bft if the Required Marketing exceeds the Marketing Expenditure Cap.