When is the Brand Development Fund fee payable for a Best Brains franchise?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Brand Development Fund | $1 per subject per student up to $3, subject to a $250 per month minimum | Payable the 19th of each month | FA Sec. 2(D). |
The additional 4% added to the royalty will be used toward Brand Development Fund.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, the Brand Development Fund fee is payable the 19th of each month. The standard Brand Development Fund fee is calculated as $1 per subject per student, with a cap of $3 per student, and is subject to a minimum of $250 per month. This fee is detailed in Item 6, which outlines various other fees associated with operating a Best Brains franchise.
In addition to the standard Brand Development Fund fee, franchisees may encounter an additional contribution under specific circumstances. If a Best Brains location receives a poor review during an audit conducted 6-12 months after enrolling the first student (and at any time thereafter), the royalty fees will increase to 18%, and the location will enter a probationary period for up to 6 months. The additional 4% added to the royalty fee is then allocated to the Brand Development Fund. This additional fee is imposed upon subsequent poor reviews as well.
Best Brains franchisees should note that all fees are uniformly imposed and collected via EFT (Electronic Funds Transfer), as stated in Note 2 of Item 6. These fees are non-refundable. Furthermore, Note 3 clarifies that Best Brains may increase specified fees, contributions, and dollar amounts, but no more than once during any fiscal year, to reflect increases in the Metropolitan Area Consumer Price Index for Urban Consumers.