Where does the additional 4% added to the royalty fee go during the Probationary Period for a Best Brains franchise?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon subsequent audits, conducted at random, if the franchise has a poor review, the royalty will remain at 18% and reestablish a Probationary Period.
The additional 4% added to the royalty will be used toward Brand Development Fund.
Upon a successful re-audit, the additional royalty fee may be removed and the franchised location will no longer be under a probationary period.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, if a franchise receives a poor review during an audit, the royalty fees will increase to 18% of Regular Gross Sales, and the franchised location will enter a Probationary Period for up to 6 months. This is an increase from the standard 14% royalty fee.
The FDD specifies that the additional 4% added to the royalty during this Probationary Period will be used toward the Brand Development Fund. This fund is used for marketing and brand-building activities that benefit the entire Best Brains franchise system.
Upon a successful re-audit, Best Brains may remove the additional royalty fee, and the franchised location will no longer be under a probationary period, returning the royalty fee to the standard 14%.