What is the sourcing fee for Bft if a franchisee acquires Development Rights under a Multi-Unit Agreement for the right to open three to five Studios?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
evelopment Rights under a Multi-Unit Agreement for the right to open two (2) additional Studios, then the
sourcing fee will be $40,000 (in addition to your Development Fee); (ii) if you acquire Development Rights under a Multi-Unit Agreement for the right to open three (3) to five (5) Studios, then the sourcing fee will be $50,000 (in addition to your Development Fee); (iii) if you acquire Development Rights under a Multi-unit Agreement for the right to open six (6) to nine (9) Studios, then the sourcing fee will be $84,000 (in addition to your Development Fee); and (iv) if you acquire Development Rights under a Multi-Unit Agreement for the right to open ten (10) or more Studios, then the sourcing fee will be $120,000 (in addition to your Development Fee). For purposes of this chart in Item 7, we have included the potential additional sourcing fee i
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, if a franchisee acquires Development Rights under a Multi-Unit Agreement to open three to five studios, the sourcing fee is $50,000. This fee is in addition to the Development Fee. The sourcing fee is paid as a lump sum by certified check or bank wire at the signing of the Multi-Unit Agreement. The sourcing fee is payable to Bft.
This sourcing fee applies if an existing franchisee is purchasing Development Rights and a franchise broker is owed a commission due to a previous introduction to Bft or its affiliates. The Development Fee itself is separate and depends on the number of studios the franchisee agrees to develop, calculated as $10,000 times the number of studios less one. For example, if a franchisee commits to opening three studios, the Development Fee would be $20,000.
It's important to note that the sourcing fee is non-refundable. Prospective franchisees should factor this cost into their initial investment calculations, especially if they are existing franchisees who worked with a broker during the process. Understanding the conditions under which the sourcing fee applies is crucial for accurate financial planning when considering a multi-unit Bft franchise agreement.