What is the transfer fee that a Bft franchisee must pay to the franchisor upon transfer of the franchise?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
r, pledge or encumber its interest in this Agreement, in the license granted hereby, in the assets of the Studio, any of its rights hereunder, in the lease for the premises at which the Studio is located, or in the control or management of the Studio (each a "Transfer"), and any purported Transfer shall be null and void. If Franchisee is a corporation, limited liability, partnership, or an individual or group of individuals, any assignment (or new issuance), directly or indirectly, occurring as a result of a single transaction or a series of transactions that alters the percentages of ownership interests reflected on Exhibit 1 to this Agreement must promptly be reported to Franchisor and is a Transfer within the meaning of this Article 14. Any proposed Transfer shall be subject to Franchisor's right of first refusal provided in Section 14.5 below.
- 14.2 Conditions for Consent of Transfer. Franchisee must provide Franchisor with all information or documents that Franchisor requests about the proposed Transfer, the transferee, and its owners. Upon Franchisor's receipt of such information, Franchisor shall not unreasonably withhold its consent of a proposed transfer, provided that the prospective transferee, in Franchisor's reasonable judgment, and as demonstrated by satisfactory background and credit checks (including bankruptcy search, criminal and litigation histories, United States Office of Foreign Assets Control search, politically exposed persons PEP search) conducted by reputable agencies and sources, is of good moral character and reputation, has no conflicting interests, has a good credit rating and sufficient and competent business experience, aptitude and financial resources acceptable to Franchisor's then-current standards for franchisees; and that the following conditions are met: (1) Franchisee pays Franchisor a transfer fee in an amount equal to $10,000
(except in those cases set forth at the end of this Section where only an administrative fee is charged), as well as any applicable broker fees due in connection with the transaction; (2) Franchisee and its related parties sign a prescribed form of general release in favor of Franchisor and its related parties in a form acceptable to Franchisor; (3) the proposed transferor and transferee and their respective owners must execute a form of consent to transfer pursuant to which, at Franchisor's option, either (a) transferee agrees to execute Franchisor's then-current 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 franchisee must pay a transfer fee of $10,000 to Bft when transferring their franchise. This fee is required to obtain Bft's consent for the transfer, assuming the prospective transferee meets Bft's standards for franchisees. These standards include demonstrating good moral character, a solid credit rating, and sufficient business experience and financial resources.
In addition to the transfer fee, the franchisee must also meet several other conditions for the transfer to be approved. These conditions include providing all requested information about the transfer and transferee, signing a general release in favor of Bft, ensuring the transferee executes Bft's current franchise agreement, upgrading the studio if necessary, and ensuring the transferee completes the required training programs. All outstanding debts to Bft and its suppliers must also be settled, and there must be no outstanding defaults on any agreements.
There are some exceptions to the standard transfer fee. The franchisee will instead pay an administrative fee of $750 if the transfer is from the franchisee to an entity wholly owned by the franchisee, or $1,500 if the transfer is to an immediate family member. If a franchise broker is owed a commission in connection with the purchase of the Bft studio, the proposed transferee must pay Bft a sourcing fee of $30,000.