How is the Bft Royalty fee paid?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 7% of Gross Sales generated by your Studio over the relevant reporting period 1 | Payable weekly via electronic funds transfer (“EFT”) based on the Gross Sales of your Studio during the preceding business week | You will be required to start paying your Royalty once your Studio begins collecting revenue from operations. We may collect your Royalty on a different interval (for example, monthly). |
1Gross Sales. Except as provided below, the term "Gross Sales" means the total revenue, in whatever form, generated by your Studio, whether or not in compliance with your Franchise Agreement and regardless of receipt, including all revenue generated from the sale and provision of any and all gift cards and other products and services at or through your Studio and all proceeds from any business interruption insurance related to the nonoperation of your Studio. Please note that the following are excluded from Gross Sales: (a) any sales tax and equivalent taxes that you collect for or on behalf of any governmental taxing authority and paid to it, and (b) the value of any allowance issued or granted to any client of the Studio that you credit in good faith in full or partial satisfaction of the price of the Approved Products or Approved Services offered in connection with your Studio. You must participate in our then-current electronic funds transfer and reporting program(s). Currently, we collect all amounts owed to us through our designated third-party service provider. All fees owed and any other amounts designated by us must be received or credited to our account by pre-authorized bank debit by 5:00 p.m. P.S.T. on or before the applicable due date. Your Studio may be located in a jurisdiction whose taxing authority will subject us to tax assessments on payments you submit to us for the Royalty fees and Fund Contributions. Under such circumstances, you will be required to adjust, or "gross up" your payment to us to account for these taxes.
Source: Item 6 — OTHER FEES (FDD pages 21–26)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the royalty fee is 7% of the Gross Sales generated by the studio over the relevant reporting period. This fee is payable weekly via electronic funds transfer (EFT) based on the Gross Sales of the studio during the preceding business week. Bft requires franchisees to begin paying royalties once the studio starts collecting revenue from operations. However, Bft retains the right to collect royalties on a different interval, such as monthly.
Bft franchisees must participate in the then-current electronic funds transfer and reporting programs. Currently, all amounts owed to Bft are collected through their designated third-party service provider. All fees and other amounts designated by Bft must be received or credited to their account by pre-authorized bank debit by 5:00 p.m. P.S.T. on or before the applicable due date.
Furthermore, if a Bft studio is located in a jurisdiction that subjects Bft to tax assessments on royalty and Brand Development Fund contributions, the franchisee will be required to adjust, or "gross up," their payment to Bft to account for these taxes. This ensures that Bft receives the full royalty amount, regardless of any tax implications in the franchisee's location.