Why is the sourcing fee required for Bft franchises according to the addendum?
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 addendum outlines the requirement for a $28,000 non-refundable sourcing fee. This fee is applicable when a franchisee already operates an existing Bft studio and, due to a prior introduction to Bft or its affiliates by a third-party franchise broker, a commission is owed. This fee is in addition to the initial franchise fee.
In simpler terms, if a franchisee was connected to Bft through a franchise broker, Bft requires the franchisee to pay a sourcing fee of $28,000 to cover the commission owed to that broker. This fee is non-refundable and must be paid upon the execution of the Franchise Agreement.
This arrangement ensures that the broker who facilitated the connection between the franchisee and Bft is compensated. It's important for prospective franchisees to understand this obligation, especially if they have been introduced to Bft through a broker, as it adds to the initial investment required to start the franchise.