In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a BFT franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a BFT franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned BFT outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the BFT franchise opportunity

Section V – Presentation and analysis of BFT’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• fiscal year 2023 monthly gross revenue (February 2023 to January 2024) for the two franchised BFT studios (Santa Monica and Fort Lauderdale) that operated throughout the entire measurement period
  

• fiscal year 2023 average, median, maximum, and minimum monthly membership attrition rate for the 10 franchised BFT studios that were owned and operated by a franchisee for at least 6 calendar months as of January 31, 2024

• fiscal year 2023 average, median, maximum, and minimum revenue mix (memberships, services, and fees) for the 10 franchised BFT studios that were owned and operated by a franchisee for at least 6 calendar months as of January 31, 2024

Section VI – Key ratios, comparables, computations, and analyses for the BFT franchise opportunity (exclusive content for Platinum subscribers)

Section I – BFT Franchise Costs

• BFT franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $60,000
• Initial Training Program Fees:  $0
• Travel and Living Expenses While Training:  $0 to $2,500
• Real Estate/Lease and Professional Fees:  $33,000 to $59,000
• Net Leasehold Improvements:  $102,500 to $214,400
• Signage:  $22,000 $28,000
• Insurance:  $1,400 to $2,800
• Payments in Connection with Fitness Equipment & Initial FF&E Package:  $12,400 to $32,200
• Pre-Sales and Soft Opening Retail Inventory Kit:  $12,000
• Audio/Visual Package, Computer System, and Related Components:  $50,000
• Initial Grand Opening Marketing & Advertising Spend:  $15,000 to $20,000
• Initial Instructor Training Fees:  $5,000
• Technology and Software Fees:  $3,620
• Additional Funds for 3 Months:  $12,000 to $30,000
• Total Estimated BFT Franchise Costs:  $328,920 to $519,520

Section II – BFT’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• BFT’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $60,000
• Royalty Fee:  7% of Gross Sales
• Brand Development Fund Contributions:  currently, 2% of Gross Sales
• Regional Co-Op:  as the Co-Op determines
• Local Advertising Requirement:  at least $1,500 per month

Section III – Number of Franchised and Company-Owned BFT Outlets

Franchised

2021

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

2022

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

2023

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  32
• Net Change:  +30

Company-Owned

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section IV – News Updates on the BFT Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the BFT Franchise (Item 19, 2024 FDD)

• “Gross Revenue” means the total revenue generated by a given Studio, including all revenue generated from the sale and provision of any and all approved services at, from, or otherwise through, that Studio.

• Gross Revenue excludes sales tax (that the Studio owner must pay directly to the appropriate taxing authority). Please note, Gross Revenue is defined differently than how “Gross Sales” is defined in the Franchise Agreement, and as such, the amount of Royalty fees you pay under the Franchise Agreement may be different than if applied to Gross Revenue data provided below.

• “Measurement Period” means the period beginning on February 1, 2023, and ending on January 31, 2024. Each month in the Measurement Period is an entire calendar month.

• “Non-Traditional Site” means any location that is situated within or as part of a larger venue or facility and, as a result, is likely to draw the predominance of its customers from those persons who are using or attending events in the larger venue or facility (for example, “big box” gyms and/or fitness facilities, cruise ships, military bases, shopping malls, airports, sports facilities and stadiums, industrial or office complexes, hotels, train stations and other transportation facilities, travel plazas, casinos, hospitals, theme parks, convention centers, colleges/universities, multi-unit residential properties, and other similar captive market locations).

• A “Qualified Studio” means a Studio that was owned and operated by a franchisee for at least 6 calendar months as of January 31, 2024. There were 10 Qualified Studios as of January 31, 2024. Qualified Studios do not include Studios that operated at Non-Traditional Sites.

• The data presented in the charts below is data BFT obtained by polling the information directly from the franchisees’ gym management software systems and/or from profit and loss reports provided to BFT by franchisees. In all cases, the data used was the franchisees’ data.

• Neither BFT nor its affiliates have undertaken an independent investigation to verify the data that it polled from the franchisees’ gym management software systems or that was provided to it by franchisees. BFT does not anticipate the data polled from or provided by current franchisees in this Item 19 will materially differ from that of a new franchisee.

• This Item 19 contains certain historical data related to the operation of certain Studios.

Part 1 – Gross Revenue of Studios

• The chart below provides the data relevant to Studios that operated throughout the entire Measurement Period:

BFT Santa Monica

• February 2023:  $77,517
• March 2023:  $82,526
• April 2023:  $81,293
• May 2023:  $80,709
• June 2023:  $74,999
• July 2023:  $70,383
• August 2023:  $72,395
• September 2023:  $73,577
• October 2023:  $79,875
• November 2023:  $73,071
• December 2023:  $66,839
• January 2024:  $81,204
• Total:  $914,388

BFT Fort Lauderdale

• February 2023:  $11,719
• March 2023:  $8,195
• April 2023:  $11,728
• May 2023:  $10,599
• June 2023:  $10,763
• July 2023:  $10,876
• August 2023:  $13,020
• September 2023:  $13,346
• October 2023:  $14,345
• November 2023:  $15,003
• December 2023:  $12,881
• January 2024:  $15,059
• Total:  $147,534

Part 2 – Monthly Membership Attrition Rate

• Average:  6.4%
• Number and Percentage That Met or Exceeded the Average:  5/50.0%
• Median:  6.4%
• Maximum:  9.8%
• Minimum:  2.8%

• “Membership Attrition Rate” means the number of cancelled Studio memberships during a particular calendar month divided by the number of Studio members at the end of the prior respective calendar month.

Part 3 – Average Revenue Mix

Memberships

• Average:  88%
• Number and Percentage That Met or Exceeded the Average:  5/50.0%
• Median:  88%
• Maximum:  93%
• Minimum:  83%

Services

• Average:  5%
• Number and Percentage That Met or Exceeded the Average:  4/40.0%
• Median:  4%
• Maximum:  8%
• Minimum:  2%

Fees

• Average:  1%
• Number and Percentage That Met or Exceeded the Average:  3/30.0%
• Median:  1%
• Maximum:  4%
• Minimum:  0%

Products

• Average:  6%
• Number and Percentage That Met or Exceeded the Average:  6/60.0%
• Median:  7%
• Maximum:  10%
• Minimum:  0%

• “Fees” means Gross Revenue attributed to fees charged by Studios, such as set up fees, cancellation fees, monthly freeze fees, and enhancement fees.

• “Memberships” means Gross Revenue attributed to down payments and recurring dues for Studio memberships and membership add-ons.

• “Products” means Gross Revenue attributed to retail products sold by Studios.

• “Services” means Gross Revenue attributed to services that Studios provide, such as personal training services, drop-in fees, and studio class packages.

• Some Studios have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.

Section VI – BFT Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️