What is the basis for Best Brains' policy for determining when accounts receivable are past due or delinquent?

According to Best Brains' 2025 Franchise Disclosure Document, the policy for determining when accounts receivable from franchisees for franchise fees and royalties are past due or delinquent is based on two factors. These factors are how recently payments have been received and the past history of collections.

For a prospective franchisee, this means that Best Brains assesses the timeliness of payments from franchisees based on their payment behavior. If a franchisee has a history of on-time payments, Best Brains may be more lenient in considering an account past due. Conversely, if a franchisee has a history of late or missed payments, Best Brains may classify their account as past due more quickly.

This policy highlights the importance of maintaining a good payment record with Best Brains. Consistent and timely payments can help franchisees avoid being classified as delinquent, which could potentially lead to penalties or other adverse consequences as outlined in the franchise agreement. Franchisees should ensure they understand the specific payment terms and due dates to maintain a positive payment history with Best Brains.