From what date is the Consumer Price Index increase calculated for Best Brains fee increases?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- N. Fee Increase. Notwithstanding anything to the contrary contained in this Agreement, all specified fees, contributions and dollar amounts referred to in this Agreement may be increased from time to time by the Company, but in no event more than once during any fiscal year of Company, to reflect increases in the Metropolitan Area Consumer Price Index for Urban Consumers - All Items (1982- 1984 = 100) ("Consumer Price Index") from the date of this Agreement, as published by the U.S. Department of Labor, or in a successor index. Any initial increase will be based solely on any increase of the Consumer Price Index from and after July 1, 2011 and any such increase will be uniform as to all BEST BRAINS learning center franchisees.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, the company may increase specified fees, contributions, and dollar amounts, but no more than once per fiscal year. These increases are tied to the Metropolitan Area Consumer Price Index for Urban Consumers - All Items (1982-1984 = 100), as published by the U.S. Department of Labor.
The base date for calculating any initial increase in fees is July 1, 2011. Any increase will be uniform across all Best Brains learning center franchisees. This means that all franchisees will experience the same percentage increase in fees based on the change in the Consumer Price Index since that date.
For a prospective franchisee, this clause means that certain fees outlined in the agreement could increase over time due to inflation. However, Best Brains is limited to increasing these fees only once per fiscal year, providing some predictability. It is important to note that the increase is tied to a specific index and calculated from a fixed date, ensuring a consistent approach across all franchise locations.