What were the total expenses for Best Brains for the year ended December 31, 2023?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2. Other Expenses | Year Ended December 31, 2023 | Year Ended December 31, 2022 |
|---|---|---|
| Accounting | 19,050.00 | 8,800.00 |
| Advertising and Promotion | 302,366.80 | 321,027.72 |
| Automobile | - | 372.70 |
| Background check | 256.25 | 110.50 |
| Bad debts | _ | 58,184.34 |
| Conference fund | 17,111.26 | - |
| Contributions | 4,351.00 | 801.40 |
| General Liability Insurance | 8,333.00 | 11,668.00 |
| Curriculum Development | 12,275.00 | 158,620.00 |
| Document Charges | 10,188.23 | 2,413.74 |
| Dues and Subscriptions | 40,966.31 | 40,093.11 |
| E Learning expenses | 33,557.24 | 27,615.06 |
| Health Insurance | 111,033.28 | 97,690.20 |
| Insurance Expense | 1,024.18 | 5,666.41 |
| Gifts | 833.67 | 16,560.68 |
| Janitorial | 7,021.55 | 7,882.75 |
| Legal | 19,616.42 | 15,398.30 |
| Licenses&Permits | 262.16 | 7,963.15 |
| Marketing Expenses | 9,119.40 | 4,070.03 |
| Material Development | 892,640.00 | 423,694.53 |
| Meals and Entertainment | 70,511.95 | 42,426.83 |
| Office Expenses & Supplies | 285,124.00 | 151,732.56 |
| Outside Services | 768,500.00 | 609,120.88 |
| Processing fees | 19,525.36 | 5,328.50 |
| Postage | 36,227.04 | 33,570.63 |
| Printing Charges | 25,930.25 | 23,292.11 |
| Professional Fees | 184,248.39 | 160,438.83 |
| RecruitmentExpenses | 28,555.46 | 16,536.22 |
| Referral Expense | 5,000.00 | 5,000.00 |
| Reimbursements | 129,689.89 | 79,660.75 |
| 286,147.30 | 284,322.09 | |
| Rent Expense Repairs & Maintainence | 42,157.16 | 61,120.77 |
| Retirement Benefits | 42,137,10 | 737.75 4,694.00 |
| Sales tax | - | 4,094.00 |
| Salaries & Wages ( net of ERTC) | 160,000.00 | 100,000.00 |
| - Officer's Salary | 920,613.15 | 874,929.36 |
| - Other Salary | 85,798.95 | · |
| Payroll taxes | 66,876.76 | 78,915.38 31,881.04 |
| 1099 Contractors | 76,848.01 | |
| Shipping & Customs | 250,160.00 | 69,361.41 4,360.88 |
| Subcontractors | 250,160.00 | 133.00 |
| Support Services | 902 215 56 | |
| software services | 893,315.56 | 672,000.00 |
| Taxes | 7,819.63 | 2 610 06 |
| - Property Taxes | 7,819.03 | 3,610.96 118.65 |
| - Use Tax | - - | 1,712.59 |
| -federal | - 171.27 | 413.77 |
| - Other | 5,785,44 | |
| Telephone | • | 4,295.03 |
| Training Expense | 3,300.00 | 2,025.00 |
| Travel Expenses | 203,700.23 6,561.71 | 104,596.26 |
| Utilities Total | 6,052,573.26 | 6,804.19 4,641,772.06 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the total expenses for the year ended December 31, 2023, were $6,052,573.26. This figure encompasses a wide range of operational costs, including accounting fees ($19,050.00), advertising and promotion ($302,366.80), curriculum development ($12,275.00), and material development ($892,640.00). Other significant expenses include office expenses and supplies ($285,124.00), outside services ($768,500.00), and salaries and wages, including officer's salary ($160,000.00) and other salary ($920,613.15).
Prospective Best Brains franchisees should carefully review these expenses to understand the financial obligations associated with running the business. The high costs in areas like material development and outside services suggest a significant investment in educational content and external support, which could be crucial for maintaining the quality of the Best Brains program. Franchisees should also note the substantial expenses related to salaries and wages, indicating the need for a well-compensated staff.
Understanding these expenses is crucial for developing a realistic business plan and financial projections. A potential franchisee should compare these figures with industry benchmarks and assess how they might vary based on their specific location and operational scale. Furthermore, it would be prudent to inquire about the specific services covered under 'outside services' and the details of 'material development' to fully grasp the value and necessity of these expenditures.
Overall, the detailed breakdown of expenses provides valuable insight into the cost structure of a Best Brains franchise. By carefully analyzing these figures, prospective franchisees can make informed decisions and prepare for the financial realities of operating a Best Brains learning center.