Can Bft update or modify the list of approved suppliers?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
ds, you must first obtain our prior written approval as described more fully in this Item.
Approved Suppliers
We have the right to require you to purchase any items or services necessary to operate your Studio from a supplier that we approve or designate (each, an "Approved Supplier"), which may include us or our affiliate(s). We will provide you with a list of our Approved Suppliers in writing as part of the Learning Management System or otherwise in writing, and we may update or modify this list as we deem appropriate. When evaluating and approving Approved Suppliers, we consider a variety of factors. While the prices at which a supplier sells its goods or services is one factor, it is not the only factor we consider. Our designation of an Approved Supplier does not mean that such Approved Supplier's prices will be lower than those of other suppliers.
Currently, we have Approved Suppliers for the following items that you must purchase in connection with the establishment and/or operation of your Studio: (i) Pre-Sales and Soft Opening Retail Inventory Kit, as well as
certain other ongoing inventory items; (ii) the Fitness Equipment & Initial FF&E Package; (iii) the Pre-Opening Instructor Training that your instructors must complete to become Authorized Instructors (and related materials); (iv) certain other exercise equipment/supplies; (v) Audio / Visual Package; (vi) insurance coverage (subject to applicable law where the Studio is located); (vii) shipping and installation services; (viii) training materials associated with the Fundamentals Training Program and the Pre-Opening Instructor Training; and (ix) the POS System and then-current software we require you to use in connection with that POS System and your Studio, including, without limitation, any software and technology we determine to provide to you as part of our System in connection with your then-current Technology Fee.
We may develop proprietary products for use in your Studio, including private-label products that bear our Marks, and require you to purchase these items from us or our affiliate(s).
If you wish to purchase a product or service that we require you to purchase from an Approved Supplier from an alternate source, then you must obtain our prior written approval as outlined more fully in this Item. We may provide our standards and specifications for our Approved Products and Approved Services directly to our Approved Suppliers, and may provide these standards and specifications to an alternative supplier you propose if: (i) we approve the supplier in writing as outlined more fully in this Item;
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–36)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft has the authority to update or modify the list of approved suppliers as they deem appropriate. Bft will provide franchisees with a list of approved suppliers in writing, typically through the Learning Management System, and may change this list at any time.
When evaluating and approving suppliers, Bft considers various factors, with the price of goods or services being only one aspect. The designation of a supplier as 'approved' does not guarantee that their prices will be the lowest. If a franchisee wishes to use a non-approved supplier, they must obtain prior written approval from Bft, and Bft may require the franchisee to cover the costs associated with evaluating the proposed supplier.
Bft may also negotiate purchase arrangements, including price terms, with approved suppliers on behalf of the entire Bft system. They may establish strategic alliances or preferred vendor programs, potentially limiting the number of approved suppliers or designating mandatory sources for certain products, equipment, and services. Bft can also refuse to approve new suppliers if they believe it would not benefit the system. Bft and its affiliates may receive compensation from approved suppliers through rebates, commissions, or other means. In 2024, Bft received $154,772 in allowances, rebates, or other consideration from vendors, which constituted 6.3% of their total revenue of $2,447,103 during the year. The predecessor received $594,663 in similar allowances, rebates, and other consideration. Xponential received $6,837,252 in allowances, rebates, or other consideration from vendors in connection with purchases by franchisees of all Xponential Brands in the United States and Canada. These funds can be used for any purpose Bft deems appropriate.