What gross sales reporting period is a Best Brains franchisee required to use?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Reports. You shall furnish to us the following reports among others:
- (i) On the 10th of each month, an electronic or other report (as we designate) of the Gross Sales of the Franchised Business for the period of the 11th of the previous month to the 10th of the current month;
- (ii) On the 10th of each month, a copy of your bank statement for the previous month
- (iii) On the 10th of each month, a copy of your payment report from your payment processing service (currently CSG Forte) for the period of the 11th of the previous month to the 10th of the current month
- (iv) On the 10th of each month, a profit and loss statement for the preceding calendar month and a year-to-date profit and loss statement and balance sheet; and
- (v) within seventy-five days after the end of each calendar year, a calendar year end balance sheet and an annual profit and loss statement for the calendar year reflecting all year end adjustments.
You must verify and sign all reports submitted to us.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, franchisees must report their gross sales to Best Brains on a monthly basis. Specifically, franchisees are required to submit an electronic or other designated report of their gross sales for the period covering the 11th of the previous month to the 10th of the current month. This report is due by the 10th of each month.
In addition to the gross sales report, Best Brains franchisees must also provide a copy of their bank statement for the previous month, a copy of their payment report from their payment processing service for the period of the 11th of the previous month to the 10th of the current month, and a profit and loss statement for the preceding calendar month, along with a year-to-date profit and loss statement and balance sheet, all by the 10th of each month. Furthermore, franchisees must submit a calendar year-end balance sheet and an annual profit and loss statement within seventy-five days after the end of each calendar year.
These reporting requirements ensure that Best Brains has a clear and consistent view of each franchise's financial performance. This allows Best Brains to accurately calculate royalty fees, which are a percentage of gross sales, and to monitor the overall health of the franchise system. The detailed reporting also enables Best Brains to provide support and guidance to franchisees who may be struggling or to identify best practices that can be shared across the system.
It is important for prospective Best Brains franchisees to understand these reporting obligations and to ensure they have the systems and processes in place to accurately track and report their gross sales and other financial data. Failure to report gross sales on time may allow Best Brains to estimate the gross sales and collect any unpaid royalty fees or other amounts due by using the electronic funds transfer system.