What happens to the additional 4% added to the royalty fee for a Best Brains franchise during a probationary period?

According to the 2025 Best Brains Franchise Disclosure Document, if a Best Brains franchise receives a poor review during an audit, the royalty fees will increase to 18% of Regular Gross Sales, and the franchised location will enter a probationary period for up to 6 months. This audit can occur 6-12 months after enrolling the first student, and at any time thereafter. Subsequent audits, conducted at random, can also trigger this increase if a poor review is received.

The additional 4% added to the royalty fee during this probationary period is specifically designated for the Brand Development Fund. This fund is used to support the Best Brains brand. If a subsequent re-audit is successful, the additional royalty fee may be removed, and the franchised location will no longer be under a probationary period.

This means that a Best Brains franchisee who fails to meet the required standards faces not only a higher royalty rate but also contributes more to the Brand Development Fund during the probationary period. This provides an incentive for franchisees to improve their performance and adhere to Best Brains' standards to avoid the increased fees and probationary status. The Brand Development Fund contribution is separate from the standard Brand Development Fund fee of $1 per subject per student up to $3, subject to a $250 per month minimum.