What triggers the late fee for a Best Brains franchise?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
up to 6 months. Upon subsequent audits, conducted at random, if the franchise has a poor review, the royalty will remain at 18% and 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 $100 late fee is applied if a franchisee submits a check or electronic transfer with non-sufficient funds (NSF), makes a late payment, or fails to provide required reports and financial statements on time. This fee is in addition to any interest charged on overdue amounts.
For a prospective Best Brains franchisee, this means maintaining diligent financial record-keeping and ensuring timely payments is crucial to avoid incurring additional costs. Setting up payment reminders and double-checking account balances before submitting payments can help prevent NSF issues. Similarly, establishing a system for generating and submitting required reports and financial statements by their deadlines is essential.
Franchisors commonly charge late fees and interest on overdue amounts to encourage timely payments and cover administrative costs associated with collecting late payments. The specific amounts and terms can vary, so it's important for franchisees to understand these obligations outlined in the franchise agreement.