factual

How often can Best Brains increase specified fees?

Best_Brains Franchise · 2025 FDD

Answer 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' 2025 Franchise Disclosure Document, Best Brains may increase specified fees, contributions, and dollar amounts referred to in the franchise agreement no more than once during any of their fiscal years. Any increase is tied to the Metropolitan Area Consumer Price Index for Urban Consumers, using the 1982-1984 base of 100, as published by the U.S. Department of Labor, or 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.

This means that Best Brains franchisees can anticipate potential fee increases annually, but these increases are capped by the rise in the Consumer Price Index. This provides some predictability, as the franchisees can research the CPI to estimate potential increases. The fees subject to this increase are those specifically outlined in the franchise agreement.

The FDD specifies that the increases will be uniform across all Best Brains locations, ensuring that no single franchisee is disproportionately affected. This standardization promotes fairness and transparency in fee adjustments. Franchisees should carefully review their franchise agreement to understand which fees are subject to these potential annual increases.

It is important for prospective franchisees to understand how these potential fee increases could impact their profitability and to factor this into their financial projections. While the increases are tied to the Consumer Price Index, franchisees should still budget for these adjustments to ensure they can maintain a healthy profit margin.

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.