What index is used to determine fee increases for a Best Brains franchise?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- Note 3 All specified fees, contributions and dollar amounts referred to in the franchise agreement may be increased from time to time by us, but in no event more than once during any fiscal year of ours, 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 the franchise agreement, as published by the U.S.
Department of Labor, or in a successor index.
The initial increase will be based solely on any increase of the Consumer Price Index from and after July 1, 2011.
Any such increase will be uniform as to all BEST BRAINS learning center franchisees.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Best Brains's 2025 Franchise Disclosure Document, the Metropolitan Area Consumer Price Index for Urban Consumers - All Items (1982-1984 = 100), published by the U.S. Department of Labor, or a successor index, is used to determine fee increases. This Consumer Price Index is used to adjust the specified fees, contributions, and dollar amounts referred to in the franchise agreement.
Best Brains may increase these fees, but no more than once during any fiscal year. The initial increase will be based solely on any increase of the Consumer Price Index from and after July 1, 2011. Any such increase will be uniform as to all Best Brains learning center franchisees.
This means that as the cost of living increases in urban areas, Best Brains has the right to increase certain fees to account for inflation. However, Best Brains is limited to increasing fees only once per fiscal year, and these increases must be applied uniformly across all franchise locations. Prospective franchisees should monitor the Consumer Price Index and factor in potential fee increases when projecting their operating costs.