What specific financial reports are Bft franchisees required to provide to the franchisor?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that its financial records shall be accurate and up-to-date at all times.
Franchisee agrees to promptly furnish any and all financial information, including tax records and returns, relating to the Studio to Franchisor on request.
- 10.2 Right to Conduct Audit or Review. Franchisor shall have the right, in its sole determination, to require a review by such representative(s) as Franchisor shall choose, of all information pertaining to the Studio, including financial records, books, tax returns, papers, and business management software programs of Franchisee, at any time during normal business hours without prior notice for the purpose of accurately tracking unit and System-wide sales, sales increases or decreases, effectiveness of advertising and promotions, and for other reasonable business purposes.
Such review will take place at the Studio or Franchisee's head office (if different), or both, and Franchisee agrees to provide all information pertaining to the Studio requested by Franchisor during its review.
If (a) the audit is conducted because of a failure by Franchisee to furnish reports, supporting records or other required information or to furnish the reports and information on a timely basis, or (b) the audit otherwise reveals an underreporting of two percent (2%) or more by Franchisee, then Franchisee shall reimburse Franchisor for all costs of the audit or review including, without limitation, travel, lodging, wage expense and reasonable accounting and legal expense.
The foregoing remedies shall be in addition to any other remedies Franchisor may have under this Agreement or applicable law.
- 10.3 Computer System and Software. Franchisee must acquire a computer for use in the operation of the Studio, as well as any audio-visual equipment Franchisor specifies.
Franchisee agrees to record all of its receipts, expenses, invoices, member lists, class schedules and other business information required by Franchisor from time to time promptly in the computer system and use the software that Franchisor specifies or otherwise approves.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees must maintain accurate and up-to-date financial records for their studios. Bft has the right to request any and all financial information, including tax records and returns, related to the studio. This information must be promptly furnished upon request.
Bft also has the right to conduct a review of all information pertaining to the studio. This includes financial records, books, tax returns, papers, and business management software programs. This review can occur at any time during normal business hours without prior notice. The purpose of the review is to accurately track unit and system-wide sales, sales increases or decreases, and the effectiveness of advertising and promotions, as well as for other reasonable business purposes.
Franchisees are also required to record all receipts, expenses, invoices, member lists, class schedules, and other business information required by Bft in a specified computer system using approved software. This ensures that Bft has access to the necessary data for monitoring performance and maintaining system standards. If a franchisee fails to furnish reports or underreports by 2% or more, they may be responsible for covering the costs of the audit or review, including travel, lodging, wages, and accounting/legal expenses.