Are fee increases uniform for all Best Brains franchisees?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- Note 3 All specified fees, contributions and dollar amounts referred to in the franchise agreement may be increased from time to time by us, but in no event more than once during any fiscal year of ours, to reflect increases in the Metropolitan Area Consumer Price Index for Urban Consumers - All Items (1982-1984 = 100) ("Consumer Price Index") from the date of the franchise agreement, as published by the U.S.
Department of Labor, or in a successor index.
The initial increase will be based solely on any increase of the Consumer Price Index from and after July 1, 2011.
Any such increase will be uniform as to all BEST BRAINS learning center franchisees.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Best Brains's 2025 Franchise Disclosure Document, certain fee increases are applied uniformly to all franchisees. Specifically, any increases to specified fees, contributions, and dollar amounts within the franchise agreement can occur no more than once per fiscal year. These increases are tied to the Metropolitan Area Consumer Price Index for Urban Consumers and will be uniform across all Best Brains learning centers. The initial increase is calculated from July 1, 2011.
However, not all fee adjustments are uniform. For instance, royalty fees can increase from 14% to 18% if a Best Brains location receives a poor review during an audit, placing the franchise in a probationary period. This increase is not applied uniformly but is based on individual performance. The additional 4% from this royalty fee increase is allocated to the Brand Development Fund. A successful re-audit can remove the additional royalty fee and probationary status.
Therefore, while Best Brains aims for uniformity in increases tied to the Consumer Price Index, other fee adjustments such as those related to performance audits can vary among franchisees. This dual approach means prospective franchisees should understand both the potential for uniform, inflation-based increases and the risk of performance-based fee adjustments.