What were the material development expenses for Best Brains?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
Transactions with related parties during the year ended December 31st, 2023
( Amount in USD) PURCHASE OF MATERIALS /SERVICES 1,096,075.00 A.1 Best Brains India A.2 Advansoft International Inc 898,225.00 661,500.00 A.3 Advansoft India 97,375.08 A.4 A1 Kaiser A.5 Best Brains of Schaumburg, INC A.6 Adventures India Pvt. Ltd 86,000.00 SALE OF MATERIALS / SERVICES B.1 Best Brains of Schaumburg, INC 29,258.49 B.2 Best Brains- Canada 460,145.82 B.3 Nala Robotics 74,355.12
Receivables / Payables From/ To related parties as at December 31st , 2023
B.4 Best Brains Online Learning
199,678.84
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Best Brains' material/services purchases from related parties are detailed in the annexure to the financial statements. In 2023, Best Brains purchased $1,096,075 in materials/services from Best Brains India, $898,225 from Advansoft International Inc, $661,500 from Advansoft India, $97,375.08 from A1 Kaiser, $86,000 from Best Brains of Schaumburg, INC, and $199,678.84 from Adventures India Pvt. Ltd.
These figures represent transactions between Best Brains and its related entities for the procurement of materials and services. For a prospective franchisee, this indicates the scale of resource sharing and potential cost efficiencies within the Best Brains network. It's important to note that these are related-party transactions, which means the prices and terms might not be the same as those available on the open market.
A potential franchisee should investigate the nature of these materials and services to understand what they encompass and how they contribute to the operation of a Best Brains franchise. Understanding the relationship between Best Brains and these related parties is crucial to assessing the fairness and transparency of these transactions. It would be prudent for a prospective franchisee to discuss these related party transactions with the franchisor to fully understand their implications.