What conditions must be met for coupons to be deducted from Regular Gross Sales for a Best Brains franchise?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- (ii) the amount of all coupons redeemed at the Franchised Business (but only if the coupons have been previously approved by the Company as provided in this Agreement and only if such coupons have been included in Regular Gross Sales)
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, franchisees can deduct the amount of redeemed coupons from their Regular Gross Sales under specific conditions. These conditions are that the coupons must have been previously approved by Best Brains and the coupons must have been included in the Regular Gross Sales initially.
This means that a Best Brains franchisee cannot simply issue coupons without corporate approval and expect to deduct their value from gross sales when calculating royalty fees. The coupons must be part of an approved promotional strategy. This ensures that Best Brains maintains control over marketing and discounting practices across all franchise locations.
For a prospective Best Brains franchisee, this highlights the importance of adhering to the franchisor's guidelines regarding promotional activities. Failure to obtain prior approval for coupons could result in the franchisee paying royalty fees on revenue they did not actually receive, thus impacting their profitability. Franchisees should maintain clear records of all approved coupons and their redemption to accurately calculate their Regular Gross Sales and royalty fees.