What is the penalty for a Best Brains franchisee who submits a late payment?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
up to 6 months. Upon subsequent audits, conducted at random, if the franchise has a poor review, the royalty will remain at 18% and reestablish a Probationary Period. The additional 4% added to the royalty will be used toward Brand Development Fund. Upon a successful re-audit, the additional royalty fee may be removed an
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, franchisees face specific penalties for late payments or failing to provide required reports and financial statements. In addition to other potential fees, Best Brains charges a $100 late fee if a franchisee submits a check or electronic transfer with non-sufficient funds (NSF), makes a late payment, or fails to provide required reports and financial statements on time.
Best Brains also charges interest on overdue amounts. Franchisees must pay interest of 2% per month, or the maximum rate permitted by law, on any amounts owed to Best Brains after the due date. This interest charge is in addition to the $100 late fee mentioned above.
It is important for prospective Best Brains franchisees to understand these financial obligations and penalties for non-compliance. Consistently late payments or failure to submit required reports could lead to significant additional costs and potential breaches of the franchise agreement. Franchisees should ensure they have sufficient financial resources and systems in place to meet all payment deadlines and reporting requirements.