What was the total value of intangible assets contributed by the Member to Bft as of March 15, 2023?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
ed Financial Statements (amounts in thousands)
Note 1 – Organization and Description of Business
XPOF Assetco, LLC (the "Company"), a Delaware limited liability company (LLC), was formed on March 6, 2023. The single member of the Company is Xponential Fitness LLC, a Delaware limited liability company (the "Member"). The Company is the direct parent and sole member of Club Pilates Franchise SPV, LLC; CycleBar Franchising SPV, LLC; Stretch Lab Franchise SPV, LLC; Stride Franchise SPV, LLC; Row House Franchise SPV, LLC; Yoga Six Franchise SPV, LLC; AKT Franchise SPV, LLC; PB Franchising SPV, LLC; Rumble Franchise SPV, LLC and BFT Franchise SPV, LLC, (together "Subsidiaries") each a Delaware limited liability corporation. The Company was formed in connection with a contemplated reorganization of Xponential Fitness LLC's structure. The Company, through its brands, licenses its proprietary systems to franchisees who in turn operate studios to promote training and instruction programs to their club members. There were no operations of the Company prior to March 6, 2023.
The Member contributed $8,000 in cash, $8,910 in property and equipment and $90,812 in intangible assets as of March 15, 2023. The majority of the intangible assets contributed consist of trademarks related to Club Pilates, CycleBar and Pu
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the Member contributed $90,812 in intangible assets to Bft as of March 15, 2023. These intangible assets primarily consist of trademarks related to Club Pilates, CycleBar, and Pure Barre brands.
This contribution of intangible assets represents a non-cash transaction that impacts Bft's overall financial position. For a prospective franchisee, this indicates that Bft's value is partly derived from these established brand trademarks. The fact that the Member contributed these assets at their carrying value suggests that Bft and the Member are under common control, which is further elaborated in the notes regarding related party transactions.
It's important to note that all assets held by Bft collateralize the existing debt of the Member. This arrangement could introduce a level of financial risk for Bft, as its assets are tied to the Member's debt obligations. A potential franchisee should consider the implications of this arrangement and how it might affect Bft's financial stability and operations.
Furthermore, the FDD mentions that the Member provides resources to support Bft's operations, including centralized cash collection and management support functions. This reliance on the Member highlights the interconnectedness of the two entities and suggests that Bft's financial statements might not be indicative of its performance if it operated independently. A prospective franchisee should evaluate the long-term sustainability of this arrangement and its potential impact on Bft's operations.