Are the grand opening expenditures for a Best Brains franchise in addition to the Brand Development Fund contributions?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- You shall contribute to the Brand Development Fund (the "Brand Development Fund") for such advertising and marketing programs as we deem appropriate.
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- You agree that we may use the Brand Development Fund to prepare advertising materials and administer national, regional and local advertising programs and public relations activities.
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- You must list and advertise the Franchised Business in such print and online directories as we may specify using our templates.
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- Telephone Numbers. We may maintain one or more telephone numbers for the Franchised Business and, if we do, you shall be authorized and required to use such number(s) during the term of this Agreement. If you are granted the rights to the number we have the right to ask for the rights upon termination or transfer. You acknowledge that we shall have the sole rights to and interest in all such telephone numbers.
(i) We shall notify the you of monthly of the cost of such telephone service and you shall, within five days of receipt of such a bill, reimburse us for our costs in maintaining telephone numbers for the Franchised Business.
(ii) If you do not so reimburse us, we may instruct the telephone service provider to terminate such telephone number(s) or to transfer such number(s) to us or our designee.
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- Grand Opening. Before opening your Franchised Business, you must spend a minimum of $14,000 on local advertising, marketing and promotion of the opening of the Franchised Business in accordance with an opening marketing plan approved by us. These grand opening expenditures are in addition to the Brand Development Fund contributions specified above.
We may require you to pay to the Brand Development Fund at the time of the "open house" before the scheduled opening of the Franchised Business these amounts which we will then spend for local advertising, marketing and promotion of the opening of the Franchised Business in accordance with an opening marketing plan developed by us.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the grand opening expenditures are separate from and in addition to the Brand Development Fund contributions.
Before opening a Best Brains franchise, a franchisee must spend a minimum of $14,000 on local advertising, marketing, and promotion. These expenses must align with an opening marketing plan approved by Best Brains. The FDD specifies that these grand opening expenditures are in addition to the Brand Development Fund contributions.
The Brand Development Fund is supported by franchisee contributions. Franchisees must contribute $1 per subject per student per month, up to $3, with a minimum of $250 per month. This contribution is due at the same time as the royalty fee. Best Brains may also require franchisees to pay into the Brand Development Fund at the time of the "open house" before the scheduled opening. These funds will then be used for local advertising, marketing, and promotion of the opening, according to a marketing plan developed by Best Brains.
In addition to the Brand Development Fund contributions and grand opening expenditures, Best Brains franchisees must spend at least $250 per month on local advertising and promotions each fiscal year. These expenditures are separate from the other two requirements. Best Brains has the right to review a franchisee's books and records to ensure compliance with these advertising requirements. If a franchisee fails to spend the required amount, Best Brains may require the franchisee to pay the unexpended amounts to the Brand Development Fund.