What happens to the royalty fees for a Best Brains franchise upon a successful re-audit?
Best_Brains Franchise · 2025 FDDAnswer 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 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, a Best Brains franchise location will be audited 6-12 months after enrolling its first student, and at any time thereafter. If the initial or subsequent random audits result in a poor review, the royalty fees increase to 18%, and the franchise enters a probationary period of up to 6 months. The additional 4% is allocated to the Brand Development Fund.
However, if a Best Brains franchise undergoes a successful re-audit, the FDD states that the additional royalty fee of 4% may be removed, and the franchise will no longer be under a probationary period.
This implies that a Best Brains franchisee has the opportunity to improve their operations and regain the standard royalty fee percentage. It also suggests that the probationary period and increased royalty fees are temporary measures contingent on performance improvements.