What revenue sources does Bft classify under the category 'Memberships'?

According to Bft's 2025 Franchise Disclosure Document, the category 'Memberships' includes revenue from down payments, recurring dues for studio memberships, and membership add-ons. This definition is important for prospective franchisees as it clarifies what income is classified under memberships when Bft calculates financial performance representations. Understanding this breakdown can help franchisees better analyze their revenue streams and compare their performance against the averages presented in Item 19.

Specifically, Bft uses these revenue categories (Memberships, Services, Fees, and Products) to present the average gross revenue mix of qualified studios. These categories are exclusive of each other, meaning revenue is distinctly allocated to one category only. This categorization allows Bft to calculate and present the average allocation of revenue sources across its studios, offering franchisees a benchmark for their own revenue mix.

For a prospective Bft franchisee, understanding how revenue is categorized is crucial for financial planning and performance assessment. By knowing that 'Memberships' revenue includes down payments and recurring dues, franchisees can accurately track and project their income. This information, combined with the average revenue mix data provided in the FDD, enables franchisees to identify areas for potential improvement and make informed business decisions.