Under what conditions can Bft increase the Fund Contribution?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
The Fund was established to promote Studios and help promote and develop our System and brand generally. As of the date of this Disclosure Document, your Fund Contribution is two percent (2%) of your Studio's Gross Sales. Fund Contributions will be payable from the earlier of (a) the date your Studio opens, or (b) the date the Studio receives a payment from a client in connection with Approved Services to be provided at any point. We may increase the Fund Contribution upon 60 days' written notice to you, subject to the Marketing Expenditure Cap (Franchise Agreement, Sections 5.6 and 9.1).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 37–50)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the Fund Contribution is initially two percent (2%) of the Studio's Gross Sales. This contribution is payable from the earlier of the date the Studio opens or the date the Studio receives a payment from a client for Approved Services. Bft retains the right to increase this Fund Contribution.
However, Bft can only increase the Fund Contribution after providing franchisees with 60 days' written notice. This increase is also subject to the Marketing Expenditure Cap, as detailed in Sections 5.6 and 9.1 of the Franchise Agreement.
This means that while Bft has the discretion to raise the contribution, franchisees will receive advance warning and the increase is limited by the overall cap on marketing expenditures. Prospective franchisees should carefully review Sections 5.6 and 9.1 of the Franchise Agreement to fully understand the limitations and implications of any potential increases to the Fund Contribution.