What is the monthly minimum contribution required for the Brand Development Fund for a Best Brains franchise?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
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 fo
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, franchisees are required to contribute to the Brand Development Fund. The contribution is calculated as $1 per subject per student each month, with a maximum of $3 per student. However, there's a minimum monthly contribution of $250 that each Best Brains franchisee must pay. This payment is due at the same time as the royalty fee.
The Brand Development Fund is used for advertising and marketing programs directed by Best Brains. Best Brains has sole discretion over the advertising concepts, materials, and placement. The FDD specifies that the fund aims to increase public recognition of the Best Brains brand for the benefit of all franchisees. However, Best Brains is not obligated to ensure that the expenditures in a specific market are proportional to a franchisee's contributions, nor is there a guarantee that any individual Best Brains business will directly benefit from the marketing programs.
Best Brains manages the Brand Development Fund separately from its other funds and can use it to cover reasonable salaries, administrative costs, and overhead related to advertising and marketing. The company is authorized to spend more or less than the total contributions in any fiscal year and may borrow or invest funds to cover deficits or surpluses. Franchisees can request an unaudited report of the fund's receipts and disbursements annually. Best Brains also retains the right to suspend or terminate the Brand Development Fund with 30 days' notice, distributing any unspent monies to the company, its affiliates, and franchisees based on their contributions over the preceding 12 months.