Under what circumstances is the Management Fee for Best Brains payable?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Management Fee | To be determined under circumstances. Currently $500 per day, plus reasonable expenses. | As incurred | Payable during period that our appointed manager manages the Franchised Business upon your default, death, or disability. FA Sec. 7(D). |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the Management Fee is payable under specific circumstances related to the operation of the franchised business. The Management Fee is incurred when an appointed manager, designated by Best Brains, takes over the management of the franchise. This occurs in situations where the franchisee defaults on their agreement, passes away, or becomes disabled and unable to manage the business themselves.
The amount of the Management Fee is to be determined based on the circumstances, but is currently set at $500 per day, in addition to reasonable expenses incurred during the management period. This fee covers the cost of having Best Brains' appointed manager oversee the daily operations and ensure the continuity of the business during the franchisee's inability to manage it. The fee is charged as incurred, meaning it is payable for each day the manager is actively managing the Best Brains center.
This arrangement provides a safety net for Best Brains, ensuring that the center continues to operate according to brand standards even in unforeseen circumstances. For a prospective franchisee, it's important to understand that while this fee is not a regular operating expense, it can become a significant cost in the event of default, death, or disability. Franchisees should consider this potential expense when evaluating the overall financial risks and benefits of investing in a Best Brains franchise.