Under what circumstances is the Management Fee payable to Best Brains?
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 management of the franchised business. The fee is incurred when an appointed manager, designated by Best Brains, takes over the operations of the franchise due to the franchisee's default, death, or disability.
The amount of the Management Fee is "to be determined under circumstances," but is currently set at $500 per day, in addition to reasonable expenses. This fee covers the period during which the appointed manager is actively managing the Best Brains franchised business. The FDD specifies that this condition is outlined in FA Sec. 7(D) of the franchise agreement.
Prospective franchisees should consider the potential financial implications of this fee. In the event of unforeseen circumstances such as default, death, or disability, the franchisee or their estate will be responsible for covering the Management Fee, in addition to the ongoing operational costs of the Best Brains center. It is important to understand the specific conditions under which Best Brains would appoint a manager and the process for determining the final Management Fee under those circumstances.