Under what conditions can Best Brains increase the fees outlined in the Franchise Agreement?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- N. Fee Increase. Notwithstanding anything to the contrary contained in this Agreement, all specified fees, contributions and dollar amounts referred to in this Agreement may be increased from time to time by the Company, but in no event more than once during any fiscal year of Company, to reflect increases in the Metropolitan Area Consumer Price Index for Urban Consumers - All Items (1982- 1984 = 100) ("Consumer Price Index") from the date of this Agreement, as published by the U.S. Department of Labor, or in a successor index. Any initial increase will be based solely on any increase of the Consumer Price Index from and after July 1, 2011 and any such increase will be uniform as to all BEST BRAINS learning center franchisees.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, Best Brains may increase the fees, contributions, and dollar amounts specified in the Franchise Agreement. However, these increases can occur no more than once during any fiscal year of the company. The increase is tied to the Metropolitan Area Consumer Price Index for Urban Consumers - All Items (1982-1984 = 100), as published by the U.S. Department of Labor, or a successor index.
The initial increase will be based solely on any increase of the Consumer Price Index from and after July 1, 2011. Any such increase will be uniform across all Best Brains learning center franchisees. This means that all franchisees will experience the same percentage increase in fees based on the Consumer Price Index, ensuring consistency across the franchise system.
This clause protects Best Brains from inflation and rising costs, allowing them to adjust fees to maintain profitability and service quality. For a prospective franchisee, this means that while fees are subject to change, the increases are capped and tied to a recognized economic indicator, providing some predictability. It is important for potential franchisees to factor in potential fee increases when projecting their operating costs and financial performance.