Does Bft have the right to require franchisees to purchase items or services from approved or designated suppliers?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
ds, you must first obtain our prior written approval as described more fully in this Item.
Approved Suppliers
We have the right to require you to purchase any items or services necessary to operate your Studio from a supplier that we approve or designate (each, an "Approved Supplier"), which may include us or our affiliate(s). We will provide you with a list of our Approved Suppliers in writing as part of the Learning Management System or otherwise in writing, and we may update or modify this list as we deem appropriate. When evaluating and approving Approved Suppliers, we consider a variety of factors. While the prices at which a supplier sells its goods or services is one factor, it is not the only factor we consider. Our designation of an Approved Supplier does not mean that such Approved Supplier's prices will be lower than those of other suppliers.
Currently, we have Approved Suppliers for the following items that you must purchase in connection with the establishment and/or operation of your Studio: (i) Pre-Sales and Soft Opening Retail Inventory Kit, as well as
certain other ongoing inventory items; (ii) the Fitness Equipment & Initial FF&E Package; (iii) the Pre-Opening Instructor Training that your instructors must complete to become Authorized Instructors (and related materials); (iv) certain other exercise equipment/supplies; (v) Audio / Visual Package; (vi) insurance coverage (subject to applicable law where the Studio is located); (vii) shipping and installation services; (viii) training materials associated with the Fundamentals Training Program and the Pre-Opening Instructor Training; and (ix) the POS System and then-current software we require you to use in connection with that POS System and your Studio, including, without limitation, any software and technology we determine to provide to you as part of our System in connection with your then-current Technology Fee.
We may develop proprietary products for use in your Studio, including private-label products that bear our Marks, and require you to purchase these items from us or our affiliate(s).
If you wish to purchase a product or service that we require you to purchase from an Approved Supplier from an alternate source, then you must obtain our prior written approval as outlined more fully in this Item. We may provide our standards and specifications for our Approved Products and Approved Services directly to our Approved Suppliers, and may provide these standards and specifications to an alternative supplier you propose if: (i) we approve the supplier in writing as outlined more fully in this Item; and (ii) the alternative supplier agrees to sign our prescribed form of non-disclosure agreement with respect to any Confidential Information we disclose.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–36)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft has the right to mandate that franchisees procure necessary items or services for operating their studio from suppliers that Bft approves or designates. These suppliers may include Bft itself or its affiliates. Bft will provide a list of approved suppliers in writing, which may be updated periodically. When evaluating potential suppliers, Bft considers various factors, with price being just one of them. The designation of a supplier as 'approved' does not guarantee that their prices will be the lowest available.
Bft may also designate itself or its affiliates as approved suppliers for any item franchisees must purchase in the future for their studios. The products and services that franchisees are required to purchase or lease from approved suppliers, or in accordance with Bft's system standards, are referred to as 'Required Purchases.' Bft estimates that these required purchases will constitute approximately 39% to 73% of the total purchases necessary to establish the studio, and about 50% to 66% of the purchases required to continue operating the studio. These percentages do not include lease payments.
If a franchisee wishes to purchase a required product or service from an alternative source, they must obtain prior written approval from Bft. Bft may provide its standards and specifications for approved products and services directly to its approved suppliers, and may also provide these standards to a proposed alternative supplier if the supplier is approved in writing and agrees to sign a non-disclosure agreement. Bft may develop proprietary products, including private-label products bearing Bft's marks, and require franchisees to purchase these items from Bft or its affiliates.
As of the date of the 2025 Disclosure Document, neither Bft nor its affiliates are approved suppliers for any required items, with a few exceptions. These exceptions include the Pre-Sales and Soft Opening Retail Inventory Kit, the technology services provided in exchange for the Technology Fee, and certain services provided by XPS, such as custom millwork, cabinets, tables, display cases, engraved wood signs, point of sale displays, custom acrylic panels, and other similar products. Additionally, none of Bft's officers own an interest in any of its approved suppliers other than Bft itself.