What is Best Brains' policy for determining when accounts receivable from franchisees are past due or delinquent?

According to Best Brains' 2025 Franchise Disclosure Document, the policy for determining when accounts receivable from franchisees are past due or delinquent is based on how recently payments have been received and the past payment history of collections.

For a prospective Best Brains franchisee, this means that the determination of whether their payments are past due or delinquent will not be based on a fixed schedule (e.g., 30 days past invoice). Instead, Best Brains will consider the franchisee's payment patterns and history. This could provide some flexibility for franchisees who have a strong payment history but encounter a temporary financial setback.

However, this policy also introduces some ambiguity, as the specific criteria used to evaluate payment history and recent payments are not detailed. A prospective franchisee should seek clarification from Best Brains regarding the specific metrics and thresholds used to determine when an account is considered past due or delinquent. Understanding these criteria will help franchisees manage their accounts and avoid potential late payment penalties or other consequences.

It is common practice in the franchise industry for franchisors to have clear and defined payment terms and late payment policies. While Best Brains' approach considers individual franchisee circumstances, it's crucial for franchisees to fully understand the franchisor's expectations and the potential ramifications of late payments.