factual

Does continuation of Best Brains franchise rights depend on achieving a certain sales volume?

Best_Brains Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (4) 6-12 months 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 Development Fund.

Upon a successful re-audit, the additional royalty fee may be removed and the franchised location will no longer be under a probationary period.

Source: Item 12 — TERRITORY (FDD pages 28–29)

What This Means (2025 FDD)

According to Best Brains' 2025 Franchise Disclosure Document, the continuation of franchise rights is not directly tied to achieving a specific sales volume. However, a franchisee's royalty fees and operational status can be affected by performance reviews.

Specifically, 6 to 12 months after enrolling the first student, and at any time thereafter, Best Brains will audit the franchise. If the audit results in a poor review, the royalty fees increase to 18% of gross sales, and the location enters a probationary period for up to six months. Subsequent random audits resulting in poor reviews will maintain the 18% royalty fee and reestablish a probationary period. The additional 4% from the increased royalty fee is allocated to the Brand Development Fund.

If a Best Brains franchisee successfully passes a re-audit, the additional royalty fee may be removed, and the location will no longer be under a probationary period. While the franchise agreement isn't terminated due to low sales volume, consistently poor performance can lead to increased costs and closer scrutiny, which could indirectly impact the franchisee's ability to operate profitably and maintain the franchise in good standing.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.