factual

Does the Best Brains franchise agreement require Company approval for coupons?

Best_Brains Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (ii) the amount of all coupons redeemed at the Franchised Business (but only if the coupons have been previously approved by the Company as provided in this Agreement and only if such coupons have been included in Regular Gross Sales)

Source: Item 23 — RECEIPTS (FDD pages 42–190)

What This Means (2025 FDD)

According to Best Brains' 2025 Franchise Disclosure Document, franchisees must obtain approval from Best Brains for any coupons they intend to use. If a franchisee uses coupons that have not been pre-approved by Best Brains, the revenue reduction from those coupons will still be included in the franchisee's gross sales when calculating royalty fees.

This approval process ensures that Best Brains maintains control over its brand's promotional activities and pricing strategies. It allows Best Brains to monitor the types of discounts being offered and their potential impact on the overall profitability and brand image. Franchisees must submit their coupon plans to Best Brains for review, and if they do not receive written disapproval within fourteen days of Best Brains receiving the materials, the coupons are considered unapproved.

This requirement is fairly common in franchising, as franchisors typically want to ensure consistent marketing and pricing across all locations. By requiring coupon approval, Best Brains can prevent franchisees from offering discounts that could devalue the brand or create price wars between different franchise locations. Franchisees should factor this approval process into their marketing plans and allow sufficient time for Best Brains to review and respond to their coupon proposals.

In practical terms, a Best Brains franchisee needs to plan their promotional offers well in advance and submit all coupon details to Best Brains for approval. Failure to do so could result in the franchisee paying royalty fees on the full, undiscounted revenue, effectively negating the benefit of the coupon. This also means that franchisees need to keep records of all coupon approvals received from Best Brains to demonstrate compliance during audits or royalty calculations.

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.