Does the Best Brains franchise agreement require coupons to be included in Regular Gross Sales?
Best_Brains Franchise · 2025 FDDAnswer 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, Regular Gross Sales do not automatically include the amount of all coupons redeemed at the Franchised Business. However, there are two conditions that must be met in order for the coupon amount to be excluded from Regular Gross Sales.
First, the coupons must have been previously approved by Best Brains. Second, these coupons must have been included in Regular Gross Sales initially.
In effect, this means that if Best Brains approves a coupon program, the franchisee must first include the value of the redeemed coupons in their Regular Gross Sales calculation. Then, the franchisee can deduct the amount of the redeemed coupons from the Regular Gross Sales figure when calculating royalty fees. This ensures that franchisees are not penalized for offering discounts while also maintaining transparency in sales reporting.