When is the Brand Development Fund contribution due 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 for up to 6 months. 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 D
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to the 2025 Best Brains 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, subject to a minimum of $250 per month. The payment for the Brand Development Fund is due at the same time as the Royalty Fee.
The Royalty Fee, as detailed in the FDD, is 14% of Regular Gross Sales, subject to a minimum of $750 per month. This fee is due by the 19th of each month, although Best Brains retains the right to designate a more frequent payment schedule. Therefore, the Brand Development Fund contribution, being tied to the Royalty Fee, is also due by the 19th of each month, unless Best Brains specifies an earlier date.
It's important for prospective Best Brains franchisees to note that late payments for any amounts owed to Best Brains, including the Brand Development Fund and Royalty Fees, incur an interest charge of 2% per month, or the maximum permitted by law. Additionally, submitting a Non-Sufficient Funds (NSF) check or electronic transfer, making a late payment, or failing to provide required reports and financial statements on time will result in a late fee of $100. Franchisees should ensure timely payments and compliance with reporting requirements to avoid these additional charges.