factual

Is Best Brains or its affiliates allowed to make a profit on purchases franchisees make from them?

Best_Brains Franchise · 2025 FDD

Answer from 2025 FDD Document

3. PAYMENT

  • 3.1Franchisee agrees to reimburse Company for the cost of the initial inventory order, including shipping costs.
  • 3.2Franchisee agrees that all costs will be reimbursed via ACH transfer, as detailed in Schedule 3 of the Best Brains Franchise Agreement.

IN WITNESS HEREOF, the parties have executed this Agreement on the date set forth above.

Source: Item 23 — RECEIPTS (FDD pages 42–190)

What This Means (2025 FDD)

Based on the 2025 Best Brains Franchise Disclosure Document, franchisees are required to reimburse Best Brains for the cost of the initial inventory order, including shipping costs. Specifically, section 3.1 states that the "Franchisee agrees to reimburse Company for the cost of the initial inventory order, including shipping costs." This indicates that Best Brains is permitted to charge franchisees for these initial inventory costs.

Furthermore, section 3.2 specifies that "Franchisee agrees that all costs will be reimbursed via ACH transfer, as detailed in Schedule 3 of the Best Brains Franchise Agreement." This outlines the method of payment franchisees must use to reimburse Best Brains for the initial inventory order.

While the document explicitly states that franchisees must cover the cost of the initial inventory order and shipping, it does not specify whether Best Brains or its affiliates are allowed to profit from these purchases. It is standard practice in franchising for franchisors to mark up the price of goods and services sold to franchisees, but this document does not confirm whether Best Brains engages in this practice.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.