What is the penalty for a Best Brains franchisee who submits an NSF electronic transfer?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Best Brains' 2025 Franchise Disclosure Document, a franchisee will incur a $100 late fee for submitting an NSF (non-sufficient funds) check or electronic transfer. This fee also applies to late payments or failure to provide required reports and financial statements in a timely manner.
This policy is fairly standard in franchising, as franchisors need to ensure timely payments from franchisees to maintain their own financial stability and provide services. The $100 late fee is intended to cover the administrative costs associated with handling a failed payment and to incentivize franchisees to manage their accounts responsibly.
Prospective Best Brains franchisees should be aware of this fee and ensure they have sufficient funds available when making payments via check or electronic transfer. They should also prioritize timely submission of reports and financial statements to avoid incurring this late fee. Careful financial management and adherence to payment schedules are crucial for maintaining a positive relationship with Best Brains and avoiding unnecessary expenses.