Can Bft waive the Minimum Gross Sales Quota for a franchisee, and if so, under what circumstances?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
mer service. Your employees, including independent contractors, must meet minimum standards for courteousness and customer service.
Minimum Gross Sales Quota(s)
Unless waived by us due to unique market conditions, you must meet a certain minimum monthly Gross Sales quota (the "Minimum Monthly Gross Sales Quota"), as follows: (i) you must achieve and maintain trailing 12-month average monthly Gross Sales of $15,000 by the 1st anniversary of your Studio's Soft Opening; and (ii) you must achieve and maintain trailing 12-month average monthly Gross Sales of $20,000 by the 2nd anniversary of your Studio's Soft Opening and each successive anniversary.
If you fail to meet the Minimum Monthly Gross Sales Quota at any time during the term of your Franchise Agreement, we may institute a mandatory corrective training program upon written notice to you. You will be obligated, at your expense, to participate in and implement all temporary and permanent corrective measures that we require to address the performance standards not achieved. However, if you fail to participate in and implement all temporary and permanent corrective measures that we require, or if you fail to achieve the Minimum Monthly Gross Sales Quota during any trailing 36-month peri
Source: Item 12 — TERRITORY (FDD pages 50–54)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft may waive the Minimum Monthly Gross Sales Quota for a franchisee due to unique market conditions. The standard Minimum Monthly Gross Sales Quota requires a franchisee to achieve and maintain a trailing 12-month average monthly Gross Sales of $15,000 by the first anniversary of the Studio's Soft Opening. Furthermore, the franchisee must achieve and maintain a trailing 12-month average monthly Gross Sales of $20,000 by the second anniversary and each successive anniversary.
If a franchisee fails to meet the Minimum Monthly Gross Sales Quota at any time during the term of the Franchise Agreement, Bft may institute a mandatory corrective training program. The franchisee will be responsible for the expenses associated with participating in and implementing all temporary and permanent corrective measures required by Bft.
However, if the franchisee fails to participate in and implement the required corrective measures, or if they fail to achieve the Minimum Monthly Gross Sales Quota during any trailing 36-month period, regardless of participation in corrective training programs, Bft may terminate the Franchise Agreement upon written notice. This highlights the importance of meeting sales quotas and adhering to Bft's required corrective actions to avoid potential termination of the franchise agreement.