What deductions are made from client fees before disbursing funds to a Best Brains franchisee?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
earning center franchisees.
- Note 4 We normally collect fees from clients on your behalf and then disburse the appropriate funds to you less any Royalty Fees, Brand Development Fund, or other amounts that you may owe us.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Best Brains's 2025 Franchise Disclosure Document, the company normally collects fees from clients on behalf of the franchisee. Before disbursing the funds, Best Brains deducts Royalty Fees, Brand Development Fund contributions, and any other amounts that the franchisee may owe to them.
This arrangement means that Best Brains franchisees do not directly handle all client payments. Instead, the company acts as an intermediary, collecting the fees and then distributing the balance to the franchisee after subtracting the specified deductions. This system centralizes financial transactions and ensures that Best Brains receives its due payments promptly.
For a prospective franchisee, this process simplifies payment collection but also requires careful monitoring of the deductions to ensure accuracy. Understanding the various fees and potential charges is crucial for managing finances effectively. Franchisees should maintain detailed records and regularly reconcile their accounts with Best Brains to avoid discrepancies. Additionally, franchisees should be aware that all fees are collected via EFT (Electronic Funds Transfer) and are non-refundable.