Under what conditions will the Best Brains 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 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the standard royalty fee is 14% of Regular Gross Sales. However, this fee can increase to 18% under specific circumstances related to franchise performance reviews.
The royalty fee increases to 18% if the Best Brains franchise receives a poor review during an audit conducted 6-12 months after enrolling the first student, or at any time thereafter. This poor review triggers a Probationary Period for up to 6 months. Subsequent random audits resulting in another poor review will keep the royalty at 18% and reestablish a Probationary Period.
The additional 4% added to the royalty payments will be directed towards the Brand Development Fund. However, if a Best Brains franchise achieves a successful re-audit, the additional royalty fee may be removed, and the franchise will no longer be under a probationary period.