Does the Best Brains franchise require franchisees to offer E-Learning services?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) "Regular Gross Sales" means all sales or revenues (other than Additional Program Sales and Add-On Gross Sales), derived directly or indirectly from the Franchised Business, including on and off premises (e.g., E-Learning).
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, franchisees are required to pay a royalty fee based on gross sales, which includes revenues derived from various sources, including E-Learning. Specifically, the document states that "Regular Gross Sales" includes revenues from on and off premises activities such as E-Learning.
This means that while the FDD does not explicitly state that franchisees MUST offer E-Learning, the royalty structure is set up to include revenues generated from it. Therefore, if a franchisee chooses to offer E-Learning, those sales are subject to the standard royalty fee of 14% of Regular Gross Sales. This fee is part of the overall revenue calculation, with a minimum of $750 per month, starting either 180 days after the franchise agreement's effective date or from the first day of classes, whichever comes first.
In practical terms, a Best Brains franchisee should consider whether offering E-Learning services aligns with their business plan and market. While not mandatory, the inclusion of E-Learning revenue in the royalty calculation suggests that Best Brains anticipates or encourages franchisees to offer such services. A prospective franchisee should discuss with Best Brains the support and resources available for setting up and managing E-Learning programs, as well as the potential demand and profitability of such services in their specific territory.