What was the total amount of 'Non Compliance' income for Best Brains during January-March 2025?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| DISTRIBUTION ACCOUNT | TOTAL |
|---|---|
| Total for Health Insurance (pre-tax) | -$24,207.06 |
| IL Income Tax | |
| IL Unemployment Tax | |
| OR Income Tax | |
| OR Statewide Transit Taxes | |
| VA Income Tax | |
| WI Income Tax | |
| Total for Payroll Liabilities | -$34,273.93 |
| PPP | |
| State Income Tax Payable | |
| Total for Other Current Liabilities | $308,759.83 |
| Total for Current Liabilities | $4,811,427.46 |
| Long-term Liabilities | |
| Ally Auto | |
| Auto Finance GMC | |
| Auto Finance HEV | 82,568.98 |
| Chase Auto Finance - REV | 60,687.75 |
| Chase-CTruck | 94,364.53 |
| Deferred Franchise Revenue - LongTerm | 402,161.01 |
| EIDL Loan | 150,000.00 |
| Finance Ford E-Transit Cargo | 29,163.68 |
| Finance Ford F150 | |
| Ford Motor Credit | |
| KIA Finance | |
| Wells Fargo Tesla | |
| Total for Long-term Liabilities | $818,945.95 |
| Total for Li |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the total 'Non Compliance' income for the period of January to March 2025 was $4,000. This figure is part of the income distribution account detailed in the financial statements. The document specifies that these financial statements are unaudited.
This income is categorized under 'Service/Fee Income,' which totaled $44,145.00, and when combined with the non-compliance income, the 'Total for Service/Fee Income' reached $48,145.00. The total income for Best Brains during this period, including royalties, tuition fees, and other sources, amounted to $3,430,525.33.
For a prospective franchisee, understanding the sources of income for Best Brains is crucial. Non-compliance income could be related to fees charged to franchisees who do not adhere to the franchisor's standards or policies. While this amount is relatively small compared to overall income, it's important to understand what generates this revenue stream and how Best Brains enforces compliance among its franchisees. It is also important to note that the financial statements are unaudited, meaning they have not been independently verified, which introduces a degree of risk.