Does XPOF Assetco, LLC, which includes Bft, have transactions with its Member and affiliates?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
As discussed in Note 1 to the financial statements, the Company has significant transactions and relationships with its Member, Xponential Fitness LLC, and its affiliates. Accordingly, the accompanying financial statements may not be indicative of the results of operations that would have been achieved if the Company had operated without such affiliations. Our opinion is not modified with respect to this matter.
The Company has numerous transactions with its Member and affiliates. The Company and its Member have a centralized cash management process through the Member, which results in net advances to the Member. The Company relies on resources from the Member and other related parties under common control of the Member or the Member's parent to support its operations including centralized cash collection and management support functions, as necessary to operate the Company's franchising business. Accordingly, the consolidated financial statements may not necessarily be indicative of the conditions that would have existed or the results of operations that would have occurred if the Company had operated without such affiliations. The Member has committed to continue to provide these services to the Company for the Company's franchising operations.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, XPOF Assetco, LLC does have numerous transactions with its Member and affiliates. As stated in Note 1 to the financial statements, XPOF Assetco, LLC has significant transactions and relationships with its Member, Xponential Fitness LLC, and its affiliates.
The document indicates that XPOF Assetco, LLC and its Member, Xponential Fitness LLC, have a centralized cash management process, resulting in net advances to the Member. The company relies on resources from its Member and other related parties under common control of the Member or the Member's parent to support its operations, including centralized cash collection and management support functions.
Because of these affiliations, the financial statements provided may not be indicative of the conditions or results of operations that would have occurred if XPOF Assetco, LLC operated without such affiliations. However, the Member has committed to continue providing these services to the Company for its franchising operations. Prospective franchisees should be aware of these related-party transactions and how they might affect Bft's financial performance and stability.