Does Bft have the right to review any lease or purchase agreement for a proposed location before the franchisee enters into such an agreement?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
site selection approval. If we cannot agree on a site, we may extend the time for you to obtain a site, or we may terminate the Franchise Agreement.
We also have the right and opportunity to review any lease or purchase agreement for a proposed location before you enter into such an agreement. We may condition our approval of a given premises as an Authorized Location for your Studio on a number of conditions, including: (i) the lease for such location including the terms outlined in Section 7.2 of the Franchise Agreement and Exhibit 4 to the Franchise Agreement, including any Collateral Assignment of Lease as set forth in our then-current Learning Management System, in the lease for the location; and (ii) receiving a written representation from the landlord of the proposed premises that you will have the right to operate the Studio, including offering and selling the Approved Products and Approved Services, throughout the term of your Franchise Agreement (Franchise Agreement, Sections 2.2 and 7.2, Exhibit 4).
You must secure our approval of an Authorized Location within 90 days of executing your Franchise Agreement for that Studio or we may terminate that Franchise Agreement (Franchise Agreement, Section 1.2).
Site Selection Assistance: Multi-Unit Agreement
You are responsible for locating and presenting to us proposed sites for Studios in the Development Area. We will use reasonable efforts to review and evaluate the proposed sites within 30 days after we receive all requested information and materials to evaluate the site. We will approve the proposed site for any Studio if it meets our thencurrent standards. If we accept a proposed site, you (or your affiliate) must timely sign a separate Franchise Agreement for the site (Multi-Unit Agreement, Section 2.D).
Time to Open: Franchise Agreement
We will authorize you to commence the Pre-Sales Phase when (i) you have signed a premises lease agreement accepted by us for the Authorized Location (and, in some cases, once a letter of intent is signed in connection with the premises), and (ii) your pre-opening sales plan has been approved by us. We will authorize the Soft Opening of your Studio when (i) all of your pre-opening obligations have been fulfilled (including meeting certain minimum membership levels), (ii) pre-opening training has been completed, (iii) all amounts due us have been paid, (iv) copies of all insurance policies (and payment of premiums) and all other required documents have been received by us, and (v) all permits have been approved (Franchise Agreement, Sections 5.4, 5.5, 6.2, and 10.4).
The typical length of time between signing a Franchise Agreement or payment of consideration for the franchise and commencement of the Pre-Sales Phase (which is when you will begin generating revenue) is approximately ten (10) months, and from signing a Franchise Agreement to the Soft Opening is approximately fifteen (15) months. Note, if you are granted the right to acquire multiple franchises, these estimates relate to the signing of your first Franchise Agreement and the development of your first Studio.
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 retains the right to review any lease or purchase agreement for a proposed location before a franchisee enters into such an agreement. Bft may stipulate conditions for approving a premises as an authorized location for the studio. These conditions include specific terms outlined in Section 7.2 of the Franchise Agreement and Exhibit 4, such as a Collateral Assignment of Lease as detailed in Bft's Learning Management System.
Bft may also require a written representation from the landlord, ensuring the franchisee's right to operate the studio, including offering and selling approved products and services, throughout the term of the Franchise Agreement. This approval process is time-sensitive, as the franchisee must secure Bft's approval of an authorized location within 90 days of executing the Franchise Agreement. Failure to do so may result in the termination of the Franchise Agreement.
For franchisees entering into a Multi-Unit Agreement, they are responsible for finding and presenting proposed sites for studios within the Development Area. Bft will then evaluate these sites, typically within 30 days of receiving all necessary information, and approve those that meet their current standards. If Bft accepts a proposed site, the franchisee must sign a separate Franchise Agreement for that location. Bft's acceptance of the premises lease agreement is a condition for commencing the Pre-Sales Phase, and failure to sign a lease agreement accepted by Bft within six months of signing the Franchise Agreement may lead to termination without a refund of the Initial Franchise Fee.