Under what conditions will a Best Brains franchisee's royalty fees increase to 18%?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) 6-12 months after enrolling the first student, and at any time thereafter, the franchise will be audited.
Upon a poor review, royalty fees will increase to 18% and the franchised location will enter a Probationary Period for 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 and the franchised location will no longer be under a probationary period.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Best Brains's 2025 Franchise Disclosure Document, a franchisee's royalty fees can increase to 18% under specific circumstances related to performance audits. The standard royalty fee is 14% of Regular Gross Sales, but this can change based on audit results.
Specifically, 6 to 12 months after a Best Brains center enrolls its first student, the franchise will be audited. If this initial audit, or any subsequent random audit, results in a poor review, the royalty fees will increase to 18%. This higher royalty rate places the franchised location under a Probationary Period for up to 6 months.
The additional 4% collected from the increased royalty fee is allocated to the Brand Development Fund. However, the franchisee can have the royalty fee reduced back to the original 14% if a re-audit during the probationary period yields a successful review. At that point, the franchise will no longer be under probation.