Under what circumstances is the Development Fee paid to Bft not refundable?

According to Bft's 2025 Franchise Disclosure Document, the Development Fee associated with a Multi-Unit Agreement is not refundable under any circumstances. This fee is paid in a lump sum when the franchisee signs the Multi-Unit Agreement, granting them the right to open multiple Bft studios within a specific Development Area. The Development Fee is deemed fully earned by Bft upon payment.

The Development Fee is calculated as $10,000 for each studio, less the first one, that the franchisee commits to opening, as specified in the Development Schedule within the Multi-Unit Agreement. For example, if the agreement requires the franchisee to open three studios, the Development Fee will be 2 x $10,000, totaling $20,000. This fee increases by $10,000 for each additional studio the franchisee is obligated to open under the Development Schedule.

While the Development Fee is not a deposit, Bft applies it in $10,000 increments toward the initial franchise fee due under each Franchise Agreement (excluding the first one) that the franchisee signs to fulfill their obligations under the Multi-Unit Agreement. The initial franchise fees are the same as those required on the date of the Disclosure Document. This non-refundable policy is uniformly applied to all franchisees who enter into Multi-Unit Agreements with Bft, meaning that once the Development Fee is paid, it will not be returned, regardless of any unforeseen circumstances that may arise during the development process.