What documents is a Best Brains franchisee required to sign to allow Best Brains to collect fees on their behalf?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Landlord shall make available to the Franchisor all information which it collects or produces related to sales of the Best Brains business and the way in which the Best Brains business is operated. The Franchisee consents to Landlord providing all such information to the Franchisor.
- **A.
Royalty Fees**.
You must pay to us a "Royalty Fee" of 14% of Regular Gross Sales by the 19th of each month, or more frequently as the Company may designate, subject to a $750/month minimum, with such fee to begin the earlier of 180 days after the Effective Date of the Franchise Agreement or the first day of class, as follows:
- L. bbSupport Fee. You agree to pay to us a $1 per subject (Math and English only) per student monthly bbSupport Fee which offers app support from certified teachers (hired by Corporate) to any Best Brains students enrolled in Math or English.
- M. Placement Test Review Fee. You agree to pay to us a Placement Test Review fee of $1,500 per test due upon submission of a placement test.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
The 2025 Best Brains Franchise Disclosure Document (FDD) does not explicitly state which specific documents a franchisee must sign to allow Best Brains to collect fees on their behalf. However, it does mention several fees that franchisees are obligated to pay, such as Royalty Fees, bbSupport Fees, and Placement Test Review Fees. The FDD also mentions that the franchisee must consent to the landlord providing sales information to Best Brains.
While the FDD outlines the various fees and the method of payment, it does not detail the exact documentation required for authorizing these fee collections. It is common practice for franchisors to include clauses in the franchise agreement that authorize the collection of fees, but the FDD does not provide enough information to confirm this.
A prospective Best Brains franchisee should ask the franchisor for a comprehensive list of all documents they will be required to sign that authorize Best Brains to collect fees, including royalty fees, advertising fees, and any other ongoing payments. Understanding these obligations is crucial before entering into a franchise agreement.