What is the sourcing fee a Bft transferee must pay if a franchise broker is owed a commission?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
form of franchise agreement that will then govern the balance of the Term, or (b) this Agreement is assigned to and assumed by the proposed transferee; (4) the Studio and equipment must be upgraded, refurbished or repaired if Franchisor, in its sole discretion, decides it is necessary; (5) the transferee (a) completes (or has its Operating Principal complete) the Owner/Operator Module and has its Designated Manager complete the Designated Manager Training Program, and (b) has at least one (1) Authorized Instructor prior to reopening, and/or resuming the provision of Approve
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, a proposed transferee must pay Bft a sourcing fee of $30,000 if a franchise broker is owed a commission in connection with the purchase of the franchisee's studio. This fee is in addition to other requirements for the transfer, such as signing a general release, upgrading the studio if necessary, completing required training programs, and resolving any outstanding debts.
This sourcing fee represents a significant cost for a Bft transferee in the event a franchise broker is involved in the transaction. It is important for prospective transferees to factor this fee into their financial planning and negotiations. The fee is paid directly to Bft, not to the broker, and is triggered specifically when a commission is owed to a franchise broker for their role in the studio's purchase.
This condition highlights the importance of understanding all potential costs associated with acquiring a Bft franchise, including those related to third-party brokers. Prospective transferees should clarify with the current franchisee and any involved brokers the details of any commissions owed and ensure they are prepared to cover the $30,000 sourcing fee to Bft if applicable. This fee is separate from the standard transfer fee, which is either $750 or $1,500 depending on the nature of the transfer.