By what date must the Royalty Fee be paid to Best Brains each month?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
TX 78711 | |### EXHIBIT B
| Number of students enrolled in your Center | Monthly Fee | |---|---| | 0-100 students | $40 | | 101-200 students | $60 | | 200+ students | $80 | FRANCHISE NUMBER _________________
TABLE OF CONTENTS
| Fee | Amount | |
|---|---|---|
| E-Training Certification | $375 to be equipped to offer e-learning; $75 for each additional course required | |
| Subject Material Fee | $5 per subject per month for the availability and distribution of e-learning material | |
| Teaching Time | If we reasonably feel that you are not meeting our quality standards for E-Learning, we reserve the right to take over the provision of E-Learning for your franchise and you agree to pay to us $20 per hour for teaching time in addition to the royalties due on E-Learning Fees. | Schedule 1-Franchise Location |
Schedule 2-Lease Rider
Schedule 3-ACH Authorization Form
Schedule 4-Initial Inventory Agreement
Schedule 5-State Law Addenda
FRANCHISE AGREEMENT
| 11. | Wit
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains's 2025 Franchise Disclosure Document, the Royalty Fee, which is 14% of Regular Gross Sales, must be paid by the 19th of each month. This payment schedule may be more frequent if Best Brains designates. There is a minimum Royalty Fee of $750 per month. This fee obligation begins either 180 days after the Effective Date of the Franchise Agreement or on the first day of classes, whichever comes first.
Regular Gross Sales include all revenues from the Franchised Business, whether on-site or through E-Learning, excluding Additional Program Sales and Add-On Gross Sales. It also encompasses registration fees for any program and business interruption insurance proceeds. However, Regular Gross Sales do not include sales taxes collected from customers and remitted to the appropriate taxing authority, or the amount of approved coupons that have been previously included in Regular Gross Sales.
It's important to note that failure to pay the Royalty Fee on time may result in additional charges, such as interest and late fees, as outlined elsewhere in the FDD. Additionally, the Brand Development Fund contribution is due at the same time as the Royalty Fee, so franchisees must ensure they remit both payments by the 19th of each month to remain in good standing with Best Brains.