Is the sourcing fee for Bft refundable?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS SOURCING FEE ADDENDUM | (this "Sourcing Fee Addendum") is made and entered into by |
|---|---|
| and between | BFT FRANCHISE SPV, LLC, a Delaware limited liability company with its principal business |
| address at 17877 Von Karman Ave., | Suite 100 Irvine, CA 92614 ("Franchisor"), and |
| , whose principal business address is | |
| ("Franchisee"). | |
| 1. , 20 Sourcing Fee Addendum. This Sourcing Fee the Franchise Agreement. Terms not otherwise defined in this Sourcing Fee defined in the Franchise Agreement. This Sourcing Fee Agreement. | Background. Franchisor and Franchisee are parties to that certain Franchise Agreement dated (the "Franchise Agreement") that has been signed concurrently with the signing of this Addendum supersedes any inconsistent or conflicting provisions of Addendum have the meanings as Addendum is annexed to and forms part of the Franchise |
| 2. Agreement). ef |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the sourcing fee is non-refundable. Specifically, the document outlines that if a franchisee currently operates an existing Bft studio and a commission is owed to a third-party franchise broker due to a previous introduction to Bft or its affiliates, the franchisee must pay a sourcing fee.
This sourcing fee is set at $28,000 and is in addition to the initial franchise fee. The agreement specifies that this fee is non-refundable, meaning that under no circumstances will the franchisee be able to recover this amount once it has been paid to Bft.
Prospective franchisees should carefully consider this non-refundable aspect of the sourcing fee, as it represents a significant financial commitment that cannot be recouped, even if the franchise agreement is terminated or other unforeseen circumstances arise. It is important to fully understand the reasons for the fee and the services provided in exchange for it before signing the franchise agreement.