Does the sourcing fee for Bft include the Development Fee?
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, the sourcing fee is in addition to the Development Fee. Specifically, if a franchisee acquires Development Rights under a Multi-Unit Agreement, the sourcing fee ranges from $40,000 to $120,000, depending on the number of studios they plan to open, and this is explicitly stated as being 'in addition to your Development Fee.'
The Development Fee itself depends on the number of studios the franchisee agrees to develop under the Development Schedule. The Development Fee is calculated as $10,000 times the number of studios agreed to open, less one. For example, if a franchisee agrees to open 3 studios, the Development Fee would be 2 x $10,000, totaling $20,000.
This means that a prospective Bft franchisee entering into a Multi-Unit Agreement needs to budget for both the Development Fee and the sourcing fee separately. The sourcing fee does not cover or include any portion of the Development Fee; they are distinct financial obligations. The Development Fee is applied in $10,000 increments toward satisfaction of the initial franchise fee due under each Franchise Agreement (less the first one) that you sign in satisfaction of your obligations under the Multi-Unit Agreement.