factual

When does Best Brains defer collection of initial fees from franchisees in California?

Best_Brains Franchise · 2025 FDD

Answer from 2025 FDD Document

Item 5 of the Disclosure Document is amended by adding the following sentence:

We defer collection of initial fees until after we have completed our initial obligations to you and the franchise is open for business.

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)

What This Means (2025 FDD)

According to Best Brains' 2025 Franchise Disclosure Document, the franchisor defers collection of initial franchise fees from franchisees in California until after Best Brains has completed its initial obligations to the franchisee and the franchise is open for business.

This deferral is specific to California, as indicated in the California Addendum to the Disclosure Document. This means that a new Best Brains franchisee in California will not be required to pay the initial franchise fee upfront. Instead, the payment is delayed until Best Brains has fulfilled its initial obligations, such as providing training and site selection assistance, and the franchisee has opened their Best Brains center for business.

This arrangement can be advantageous for franchisees as it reduces the initial financial burden and aligns the franchisor's interests with the franchisee's success. It also provides the franchisee with some assurance that Best Brains is committed to supporting them through the initial setup phase before requiring the initial franchise fee payment. Prospective franchisees should confirm exactly what Best Brains's 'initial obligations' consist of to ensure they are satisfied before opening their franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.