How does Best Brains normally collect fees from clients on behalf of the franchisee?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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's 2025 Franchise Disclosure Document, Best Brains normally collects fees from clients on behalf of the franchisee. Best Brains then disburses the appropriate funds to the franchisee, after deducting any Royalty Fees, Brand Development Fund contributions, or other amounts that the franchisee may owe to Best Brains.
This arrangement means that Best Brains franchisees may not directly handle all client payments. Instead, Best Brains manages the collection process and then distributes the net revenue to the franchisee. This could simplify the franchisee's administrative tasks by centralizing payment processing.
However, franchisees need to be aware that Best Brains will deduct fees and other amounts owed before disbursing the funds. Franchisees should maintain accurate records and regularly reconcile their accounts with Best Brains to ensure proper accounting and avoid discrepancies. Understanding the timing of disbursements and the specific deductions made is crucial for managing the franchisee's cash flow.