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What is the minimum monthly Brand Development Fund payment for a Best Brains franchise?

Best_Brains Franchise · 2025 FDD

Answer from 2025 FDD Document

Type of Fee Amount Due Date Remarks
Brand Development Fund $1 per subject per student up to $3, subject to a $250 per month minimum Payable the 19th of each month FA Sec. 2(D).
  • Note 4 We normally collect fees from clients on your behalf and then disburse the appropriate funds to you less any Royalty Fees, Brand Development Fund, or other amounts that you may owe us.

Source: Item 6 — OTHER FEES (FDD pages 11–15)

What This Means (2025 FDD)

According to Best Brains' 2025 Franchise Disclosure Document, franchisees are required to contribute to a Brand Development Fund. The contribution is calculated as $1 per subject per student, with a maximum of $3 per student. However, there's a minimum monthly payment of $250 required, regardless of the per-student calculation. This fund is used to support the Best Brains brand and its marketing efforts. The Brand Development Fund payment is due on the 19th of each month.

This means that even if a Best Brains center has very few students or if students are taking a limited number of subjects, the franchisee must still pay at least $250 each month. For a new franchisee, this minimum payment is an important factor to consider when projecting monthly expenses, especially during the initial months when student enrollment may be lower. It's also worth noting that if a Best Brains franchise receives a poor review during an audit, an additional 4% royalty fee will be added, which will be used toward the Brand Development Fund.

Best Brains also collects fees from clients on behalf of the franchisee and then disburses the appropriate funds to the franchisee, less any Royalty Fees, Brand Development Fund, or other amounts that the franchisee may owe Best Brains. All fees are uniformly imposed by, collected by and payable to Best Brains via EFT and are non-refundable. It is important to note that Best Brains may increase the Brand Development Fund contribution from time to time, but no more than once during any fiscal year, to reflect increases in the Metropolitan Area Consumer Price Index for Urban Consumers.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.