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How can a Best Brains franchisee remove the additional royalty fee and probationary period?

Best_Brains Franchise · 2025 FDD

Answer from 2025 FDD Document

6-12 months after enrolling the first student, and at any time thereafter, the franchise will be audited.

Upon a poor review, royalty fees will increase to 18% and the franchised location will enter a Probationary Period for up to 6 months.

Upon subsequent audits, conducted at random, if the franchise has a poor review, the royalty will remain at 18% and reestablish a Probationary Period.

The additional 4% added to the royalty will be used toward Brand Development Fund.

Upon a successful re-audit, the additional royalty fee may be removed and the franchised location will no longer be under a probationary period.

Source: Item 6 — OTHER FEES (FDD pages 11–15)

What This Means (2025 FDD)

According to the 2025 Best Brains Franchise Disclosure Document, a franchisee's royalty fees may increase and the franchised location may enter a probationary period if the location receives a poor review during an audit. These audits occur 6-12 months after enrolling the first student and may occur randomly thereafter. If a poor review occurs, the royalty fees increase to 18% and the location enters a probationary period for up to 6 months. The standard royalty fee is 14% of Regular Gross Sales. The additional 4% is allocated to the Brand Development Fund.

If a Best Brains franchisee's location receives a poor review during an audit, the franchisee will be subject to a subsequent audit. If the subsequent audit is successful, the additional royalty fee may be removed, and the franchised location will no longer be under a probationary period.

It is important for prospective Best Brains franchisees to understand the criteria used during these audits and to maintain high operational standards to avoid the increased royalty fees and probationary period. Franchisees should inquire about the specific metrics and benchmarks used during the audit process to ensure they are meeting the franchisor's expectations.

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.