What period should the Gross Sales report cover for Best Brains franchisees?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Reports. You shall furnish to us the following reports among others:
- (i) On the 10th of each month, an electronic or other report (as we designate) of the Gross Sales of the Franchised Business for the period of the 11th of the previous month to the 10th of the current month;
- (ii) On the 10th of each month, a copy of your bank statement for the previous month
- (iii) On the 10th of each month, a copy of your payment report from your payment processing service (currently CSG Forte) for the period of the 11th of the previous month to the 10th of the current month
- (iv) On the 10th of each month, a profit and loss statement for the preceding calendar month and a year-to-date profit and loss statement and balance sheet; and
- (v) within seventy-five days after the end of each calendar year, a calendar year end balance sheet and an annual profit and loss statement for the calendar year reflecting all year end adjustments.
You must verify and sign all reports submitted to us.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, franchisees must submit a report of Gross Sales each month. Specifically, on the 10th of each month, a Best Brains franchisee must furnish a report, either electronic or in another format designated by Best Brains, detailing the Gross Sales for the period covering the 11th of the previous month to the 10th of the current month.
This means that the report covers a consistent, defined period each month, allowing Best Brains to monitor sales performance and calculate royalty fees accurately. The franchisee must also verify and sign all reports submitted to Best Brains, attesting to their accuracy.
Failure to report Gross Sales on time may result in Best Brains estimating the Gross Sales and using electronic funds transfer to collect any unpaid royalty fees or other amounts due. Best Brains is also authorized to use the data provided in these reports for various purposes, including operations, advertising, and business reports, as well as in publications and advertisements related to the sale of franchises.