Is there a Sourcing Fee Addendum for the Franchise Agreement included as an exhibit to the Bft Franchise Disclosure Document?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Exhibit A Form of Franchise Agreement and Exhibits Exhibit H State Specific Addenda Exhibit B List of State Agents for Service of Process and State Administrators Exhibit I List of Franchisees Exhibit C Financial Statements Exhibit J List of Franchisees That Left System Exhibit D Guaranty of Performance Exhibit K Form of Multi-Unit Agreement Exhibit E Statement of Prospective Franchisee Exhibit L-1 Form of Sourcing Fee Addendum (Franchise Agreement) Exhibit F Table of Contents of Manual Exhibit L-2 Form of Sourcing Fee Addendum (Multi-Unit Agreement) Exhibit G Form of General Release Exhibit M Receipts
Source: Item 22 — CONTRACTS (FDD page 79)
What This Means (2025 FDD)
Yes, according to Bft's 2025 Franchise Disclosure Document, a Sourcing Fee Addendum for the Franchise Agreement is included as an exhibit. Specifically, Exhibit L-1 is the Form of Sourcing Fee Addendum for the Franchise Agreement. There is also a Sourcing Fee Addendum for the Multi-Unit Agreement, which is Exhibit L-2.
These addenda likely outline the terms and conditions under which Bft franchisees may be required to pay a sourcing fee. Item 5 in the FDD mentions that if a franchise broker is owed a commission in connection with the purchase of an existing studio from a System franchisee, the new franchisee will pay Bft a $30,000 sourcing fee to help cover the commission owed to the broker, in lieu of the Initial Franchise Fee.
Additionally, existing franchisees purchasing additional franchises or Development Rights under a Multi-Unit Agreement may also be subject to a sourcing fee if a franchise broker is owed a commission based on a previously-made introduction. These fees range from $28,000 for a single additional franchise to $120,000 for Development Rights to open ten or more studios, in addition to the Initial Franchise Fee or Development Fee. Any applicable sourcing fee will be due on the signing of the Franchise Agreement and/or Multi-Unit Agreement and will be fully earned upon payment.