How is the Brand Development Fund contribution calculated for a Best Brains franchise?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
after enrolling the first student, and at any time thereafter, the franchise will be audited. Upon a poor review, royalty fees will increase to 18% and the franchised location will enter a Probationary Period fo
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, franchisees are required to contribute to the Brand Development Fund. This contribution is calculated as $1 per subject per student each month, with a maximum of $3 per student. However, there's also a minimum monthly contribution of $250, regardless of the number of students or subjects. This payment is due at the same time as the Royalty Fee.
This means that even if a Best Brains center has fewer students or if students are taking fewer subjects, the franchisee must still pay at least $250 per month to the Brand Development Fund. Conversely, a center with many students could pay significantly more, up to $3 per student each month. This fund is used for advertising and marketing programs directed by Best Brains.
The Brand Development Fund aims to enhance the recognition and patronage of the Best Brains brand for the benefit of all franchisees. Best Brains has sole discretion over the advertising and marketing strategies, and there is no guarantee that the expenditures in a specific market will be proportional to a franchisee's contributions. The FDD states that Best Brains is not obligated to ensure that any franchisee benefits directly or pro rata from the marketing programs.
Best Brains manages the Brand Development Fund separately from its other funds and can use it for reasonable salaries, administrative costs, and overhead related to advertising and marketing activities. The company is authorized to spend more or less than the total contributions in any fiscal year and may borrow or invest funds to cover deficits or surpluses. Franchisees can request an unaudited report of the fund's receipts and disbursements annually. Best Brains also retains the right to suspend or terminate the Brand Development Fund with 30 days' notice, and any unspent monies will be distributed to the company, its affiliates, and franchisees based on their contributions over the preceding twelve-month period.