BFTFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A BFT franchise requires a total initial investment of $510K – $1.2M, including a $60K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $361K[2]. Verdict grade: B. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $510K – $1.2M
- 85th pct Health & Fitn…
- Avg gross sales
- $361K
- 17th pct Health & Fitn…
- Royalty
- 7.0%
- 28th pct Health & Fitn…
- Units
- 49
- 71st pct Health & Fitn…
- SBA default
- N/A
Quick verdict · Health & Fitness · color = vs category peers
Green = >15% above Health & Fitness avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
At 0.4x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
The system grew 53% year-over-year. Fast growth means demand, but can strain support.
14 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $510K – $1.2M including a $60K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $361K/year (median $329K).
- Verdict B (Above Average) with a risk score of 54/100.
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- BFT Franchise SPV, LLC
- Parent company
- XPOF Assetco, LLC
- Ultimate parent
- Xponential Fitness, Inc.
- Predecessor
- has temporarily operated Studios in connection with the reacquisition of Studios from
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 17877 Von Karman Ave., Suite 100, Irvine, California 92614
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $521K
- vs $204.6M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- and predecessor to CP SPV
- and predecessor to SL SPV
- and predecessor to PB SPV
- Yoga Six Franchise SPV
- Xponential Fitness Brands International
- Stretch Lab Franchise SPV
- Club Pilates Franchise SPV
- PB Franchising SPV
Other brands the franchisor or its parent operates (Item 1).
Overview
About
BFT franchisees operate boutique fitness studio locations (likely specialized fitness classes based on Xponential Fitness portfolio). Day-to-day operations include managing class schedules, instructor staffing, member retention programs, facility maintenance, and generating revenue through class packages, memberships, and ancillary services. Franchisees are responsible for local marketing, community partnerships, and maintaining brand standards while remitting 7% of gross sales to the franchisor.
- CEO
- Michael Nuzzo
- Headquarters
- CA
- FDD year
- 2025
- States available
- 20
FDD Item 7 · 2025 filing · 14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $60K | $60K | |
| Sourcing Feenot refundable | $0 | $28K | |
| Travel & Living Expenses While Training | $0 | $3K | |
| Real Estate/Lease | $37K | $76K | |
| Net Leasehold Improvements | $72K | $561K | |
| Signage | $8K | $37K | |
| Insurance | $5K | $10K | |
| Fitness Equipment & Initial FF&E Packagenot refundable | $199K | $236K | |
| Pre-Sales and Soft Opening Retail Inventory Kitnot refundable | $14K | $18K | |
| Audio/Visual Package, Computer System, and Related Components | $39K | $39K | |
| Initial Marketing & Advertising Spend | $37K | $50K | |
| Initial Instructor Training Feenot refundable | $5K | $5K | |
| Technology and Software Fees | $5K | $5K | |
| Additional Funds - 3 months | $30K | $78K | |
| Total initial investment | $510K | $1.2M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$105K
29.0% margin
Unlevered ROIC
11%
EBITDA / total invested capital
Payback
8.7 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $510K – $1.2M
- Below avg, review vs category
- Liquid capital req'd
- $30K – $78K
- Near category avg vs category
- Franchise fee
- $40K – $60K
- Below avg, review vs category
- Royalty
- 7.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $715 |
| Training fee | $5K |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Inventory (initial) | $14K – $18K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $361K
- Per unit, per year
- Median gross sales
- $329K
- Item 19 type
- gross_sales
- Sample size
- 29 units
- vs category median 11 · large
- Range (low → high)
- $167K→$746K
- Cohort dispersion (min → max)
- Quartile band
- $213K→$559K
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 180 Health & Fitness brands
Revenue is only 0.4x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Health & Fitness averages
How BFT Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 49
- Opened
- 21
- Last reporting year
- Closed
- 2
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 4.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 5.0%
- Net growth (yr3)
- +53.1%
- Net unit change last year
3-year detail · Item 20
- Opened (3yr)
- 17
- Transfers (3yr)
- 0
- Termination rate
- 4.1%
- Franchisor-initiated terminations
- Ceased ops
- 8.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 22 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 23
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
HIGH RISK: Litigation-laden franchisor with going concern issues at parent level, no earnings disclosure, regulatory consent orders, and unverified unit economics despite rapid growth claims.
Litigation (Item 3)
No litigation disclosed in Item 3
Bankruptcy (Item 4)
Disclosed in last 7 years
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 54 / 100 rating
- 01HIGHGoing concern status is FALSE — indicates potential financial instability or restructuring at parent company level
- 02HIGHActive litigation across multiple jurisdictions with specific allegations of fraudulent inducement and disclosure violations — suggests systemic franchisor credibility issues
- 03MINORTwo regulatory consent orders (CA and WA) demonstrate state-level enforcement actions for violations
- 04MINORPending securities class actions and shareholder derivative suits against parent company (Xponential Fitness) create uncertainty about franchisor's financial viability and management integrity
- 05MINORNo Item 19 (Average Unit Volume) disclosure despite $509K-$1.2M investment range — inability or unwillingness to substantiate average franchisee earnings
- 06MINOR53.1% YoY unit growth appears strong but occurs within shrinking or restructuring parent company — growth may be artificial or unsustainable
- 07MEDHigh royalty burden (7%) combined with undisclosed net income and only $360K average revenue creates profitability uncertainty
- 08MINOR10-year term locks franchisees into commitment during period of parent company legal and financial distress
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Area-based |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 15,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 3 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | Irvine, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 14 |
View Item 3 litigation summary
No litigation disclosed in Item 3
Items 10, 11
Training & Operations
- Classroom training
- 50 hrs
- On-the-job training
- 24 hrs
- Training location
- On-site and corporate
- Site selection
- franchisee
- POS system
- ClubReady
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ClubReady
Item 20 · call current owners
Franchisee Contacts
60 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
BFT · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a BFT franchise?
The total investment to open a BFT franchise ranges from $510K – $1.2M, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do BFT franchise owners earn?
According to Item 19 of the BFT FDD, the average gross sales per unit is $361K. The median is $329K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is BFT's franchise failure rate?
SBA 7(a) loan charge-off data is not available for BFT (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many BFT franchise locations are there?
As of their most recent FDD filing, BFT has 49 total units in the United States, including 2 franchised units and 0 company-owned units. 21 new units were opened in the latest reporting year.
Is BFT a good franchise to buy?
FranchiseVerdict rates BFT as a B-grade franchise with a risk score of 54 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.