What index is used to determine fee increases for Best Brains?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- N. Fee Increase. Notwithstanding anything to the contrary contained in this Agreement, all specified fees, contributions and dollar amounts referred to in this Agreement may be increased from time to time by the Company, but in no event more than once during any fiscal year of Company, to reflect increases in the Metropolitan Area Consumer Price Index for Urban Consumers - All Items (1982- 1984 = 100) ("Consumer Price Index") from the date of this Agreement, as published by the U.S. Department of Labor, or in a successor index. Any initial increase will be based solely on any increase of the Consumer Price Index from and after July 1, 2011 and any such increase will be uniform as to all BEST BRAINS learning center franchisees.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the company may increase specified fees, contributions, and dollar amounts, but no more than once per fiscal year. These increases are tied to the Metropolitan Area Consumer Price Index for Urban Consumers - All Items (1982-1984 = 100), also referred to as the "Consumer Price Index," published by the U.S. Department of Labor, or a successor index.
For a prospective Best Brains franchisee, this means that certain fees outlined in the franchise agreement could increase over time due to inflation. The initial increase will be based on the Consumer Price Index from July 1, 2011, and will be uniformly applied to all Best Brains learning center franchisees.
It is important to note that Best Brains retains the right to modify these fees, but the agreement stipulates that increases are limited to once per fiscal year and are linked to the Consumer Price Index. This provides some predictability for franchisees in terms of potential cost increases, as they are tied to a widely recognized economic indicator.