What is the dependency related to the Best Brains initial fee collection?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Fee Collection. We reserve the right to collect fees from clients on your behalf and to disburse the appropriate funds to you less Royalty Fees, Brand Development Fund contributions or other amounts that you may owe to us. You agree to sign all documents that we may require in order to give effect to the provisions of this Section.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, Best Brains as the franchisor, reserves the right to collect fees from clients on behalf of the franchisee. This means that Best Brains can collect payments directly from the customers of the franchisee's learning center.
After collecting the fees, Best Brains will then disburse the appropriate funds to the franchisee. However, before disbursing the funds, Best Brains will deduct any Royalty Fees, Brand Development Fund contributions, or other amounts that the franchisee may owe to them. This ensures that Best Brains receives its due payments before the franchisee receives their share of the collected fees.
To enable Best Brains to collect fees on the franchisee's behalf, the franchisee must sign all necessary documents required by Best Brains. This likely includes agreements that authorize Best Brains to manage the fee collection process and to deduct any outstanding payments. This arrangement provides Best Brains with control over revenue streams, ensuring compliance with financial obligations outlined in the franchise agreement.