Are coupons 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, the amount of coupons redeemed at a franchised business can be deducted from Regular Gross Sales under specific conditions. To qualify for this deduction, the coupons must have been previously approved by Best Brains, and the value of these coupons must have been initially included in the Regular Gross Sales calculation.
This means that while franchisees can use coupons to attract customers, they need to adhere to Best Brains' guidelines to ensure that the value of those coupons is not included when calculating royalty fees. This process requires franchisees to first include the coupon value in their gross sales figures and then deduct it, streamlining accounting while maintaining transparency.
For a prospective Best Brains franchisee, this policy highlights the importance of clear communication with the franchisor regarding promotional activities. Getting prior approval for coupons is essential to avoid overstating gross sales and, consequently, overpaying royalty fees. This also underscores the need for careful record-keeping to accurately track coupon redemption and ensure proper deductions are made.