From what date is the Consumer Price Index increase calculated for a Best Brains franchise?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- Note 3 All specified fees, contributions and dollar amounts referred to in the franchise agreement may be increased from time to time by us, but in no event more than once during any fiscal year of ours, 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 the franchise agreement, as published by the U.S.
Department of Labor, or in a successor index.
The initial increase will be based solely on any increase of the Consumer Price Index from and after July 1, 2011.
Any such increase will be uniform as to all BEST BRAINS learning center franchisees.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Best Brains's 2025 Franchise Disclosure Document, the Consumer Price Index (CPI) increase, which may affect certain fees, is calculated from July 1, 2011. Best Brains may increase specified fees, contributions, and dollar amounts mentioned in the franchise agreement, 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.
For a prospective Best Brains franchisee, this means that some fees could increase over time due to inflation. However, the initial increase will only reflect changes in the CPI after July 1, 2011, providing a clear starting point for calculating potential adjustments. The FDD specifies that any such increase will be uniformly applied to all Best Brains learning center franchisees, ensuring consistent treatment across the franchise system.
It is important for franchisees to understand that while Best Brains can adjust fees based on the CPI, these adjustments can occur no more than once per fiscal year. This provides some predictability in budgeting and financial planning. Franchisees should monitor the Consumer Price Index and communicate with Best Brains to stay informed about any potential fee adjustments. Understanding the CPI adjustment policy is crucial for managing costs and maintaining profitability as a Best Brains franchisee.