What is the Brand Development Fund used for by Best Brains?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
raining program
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- We encourage you to begin training before incurring any costs or expenses related to the planned opening of the Franchised Business.
- B. Supervision and Assistance. We will provide pre-opening and post-opening operational support which we may offer in person, over the phone, or electronically, as we deem appropriate.
We will provide additional assistance upon written request. This additional assistance will incur a cost to you based on our then current fee for our personnel to perform such assistance and other reasonable expenses, including transportation and lodging.
C. Fee Collection. We reserve the right to collect fees from clients on your behalf and to disburse the appropriate funds to you less Royalty Fees, Brand Development Fund contributions or other amounts that you may owe to us. You agree to sign all documents that we may require in order to give effect to the provisions of this Section.
D. Operations Manual. We shall lend or make available to you a copy of our Operations Manual. We may modify the Manual from time to time to adjust for changes in legal, competitive, or technological changes or to improve in the marketplace. You agree to abide by the then current Operations Manual in effect.
E. Advertising. We shall direct all advertising and marketing programs financed by the Brand Development Fund. We will have with sole discretion over the creative concepts, materials and endorsements used and the geographic, market, and media placement of the advertisements. We will provide you with approved advertising and marketing materials on the same terms and conditions as other BEST BRAINS businesses.
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- The Brand Development Fund is intended to maximize general public recognition and patronage of the Marks and BEST BRAINS businesses for the benefit of all BEST BRAINS businesses and we are under no obligation in administering the Brand Development Fund to ensure that expenditures in a market area are proportionate or equivalent to your contributions or that any BEST BRAINS business benefits directly or pro rata from the conduct of marketing programs or the placement of advertising. Except as expressly provided in this Section, we assume no liability or obligation to you with respect to the maintenance, direction, or administration of the Brand Development Fund.
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- The Brand Development Fund will be accounted for separately from the other funds of the Company and shall not be used to defray the Company's general operating expenses, except for such reasonable salaries, administrative costs and overhead we may incur in activities reasonably related to the administration of the Brand Development Fund and its advertising and marketing.
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- We shall be authorized to spend in any fiscal year an amount greater or less than the aggregate contribution of all BEST BRAINS businesses to the Brand Development Fund in that year; and the Brand Development Fund may borrow from the Company or other lenders to cover deficits of the Brand Development Fund or cause the Brand Development Fund to invest any surplus for future use by the Brand Development Fund.
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Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the Brand Development Fund is used to maximize general public recognition and patronage of the Best Brains marks and businesses. Best Brains has sole discretion over the advertising and marketing programs financed by the fund, including creative concepts, materials, endorsements, and the placement of advertisements across geographic areas, markets, and media.
The Brand Development Fund is intended to benefit all Best Brains businesses, and Best Brains is not obligated to ensure that expenditures in a specific market area are proportionate or equivalent to a franchisee's contributions. Nor is Best Brains required to ensure that any Best Brains business benefits directly or pro rata from the marketing programs or advertising. The fund is accounted for separately from other company funds and will not be used for general operating expenses, except for reasonable salaries, administrative costs, and overhead related to administering the fund's advertising and marketing activities.
Best Brains is authorized to spend more or less than the aggregate contributions to the Brand Development Fund in any fiscal year. The fund may borrow from the company or other lenders to cover deficits or invest any surplus for future use. Best Brains will prepare an unaudited report of the fund's receipts and disbursements annually, available to franchisees upon written request. Best Brains can suspend or terminate the fund with 30 days' written notice. If terminated, unspent monies are distributed to the company, its affiliates, and franchisees in proportion to their contributions during the preceding twelve-month period.
Prospective franchisees should note that Best Brains retains significant control over the Brand Development Fund and its usage. While the fund aims to promote the brand, there is no guarantee that a franchisee's specific market will directly benefit from its expenditures. The ability of Best Brains to borrow against or invest the fund also introduces a degree of financial flexibility, but also potential risk, that franchisees should consider. The Brand Development Fund contribution is $1 per subject per student per month up to $3, subject to a $250 per month minimum.