How does the base fee increase for Legacy Centers at Best In Class Education Center?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
alculated in accordance with §14.3(c) below).
- (c) Monthly Student User Fees. "Monthly Student User Fees" are calculated by multiplying a "base fee" (as set forth in the Manual) by the total number of subjects taken by students enrolled at your Center as of the last day of the immediately preceding month. The base fee is currently $8 per student per subject per month (Mathematics, English and STEM are each considered a separate "subject"); provided, however, that: (i) we may increase the base fee, not more than once per calendar year, upon at least 90 days' prior notice; (ii) the maximum annual increase to the base fee is $2 per student per subject per month; (iii) the maximum base fee that we may charge at any point during the Term is $15 per student per subject per month; and (iv) if you are a renewing franchisee who operates a Legacy Center (as defined below), your initial base fee will be $4 per student per subject per month but will increase by $1 each January 31st until it equals the standard base fee charged to new franchisees. Monthly Student User Fees applicable during the first and/or last month of the Term may be prorated if the first and/or last month of the Term are less than a full calendar month.
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Best In Class Education Center FDD, the base fee for Legacy Centers increases annually. The Monthly Student User Fees are calculated by multiplying a base fee by the total number of subjects taken by students. The standard base fee is $8 per student per subject per month. However, for renewing franchisees operating a Legacy Center, the initial base fee is $4 per student per subject per month.
The base fee for Legacy Centers increases by $1 each January 31st until it equals the standard base fee charged to new franchisees. This means that Legacy Center franchisees will experience a gradual increase in their base fee over time until it matches the fee paid by new franchisees.
For a franchisee considering renewing their agreement and operating a Legacy Center, this gradual increase in the base fee could provide a more manageable transition compared to immediately paying the full standard base fee. However, it's important to note that the fee will eventually reach the standard rate, so franchisees should factor this into their long-term financial projections. A "Legacy Center" refers to a Center owned by a renewing franchisee who: (i) purchased the Center from Best In Class Education Center, LLC’s predecessor; (ii) did not sign a Remote Learning Participation Addendum with Best In Class E-Academy, LLC; and (c) elects to continue to acquire and obtain educational materials from LBIS through the BC Portal without utilization of LMS.