How is the BCP-LMS Monthly Fee calculated for a Best In Class Education Center franchise?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
14.3. BCP-LMS Fees.
(a) Systems Implementation Fee. Upon execution of this Agreement, you must pay LBIS a $2,000 fee for the initial setup and configuration of BCP-LMS at your Center.
(b) BCP-LMS Monthly Fee. On each royalty fee due date, you agree to pay LBIS (or us, if we so instruct) a BCP-LMS Monthly Fee, which is calculated as the sum of: (i) 2% of the Gross Sales minus Enrichment Sales; (ii) 1% of Special Program Sales; and (iii) Monthly Student User Fees (calculated 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.
If the number of subjects taken by a student changes during the course of a month, then you must pay the Monthly Student User Fee based on the total number of subjects taken by the student during the month, regardless of how many subjects are taken by the student at any given point in time during the month.
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Best In Class Education Center Franchise Disclosure Document, the BCP-LMS Monthly Fee is calculated as the sum of three components. The first component is 2% of Gross Sales minus Enrichment Sales. The second component is 1% of Special Program Sales. The third component consists of Monthly Student User Fees. These fees cover the licensing for BCP-LMS, associated updates, maintenance, and support.
The Monthly Student User Fees are determined by multiplying a base fee by the total number of subjects taken by students enrolled at the Best In Class Education Center as of the last day of the preceding month. The base fee is set forth in the Best In Class Education Center manual. Currently, the base fee is $8 per student per subject per month, with Mathematics, English, and STEM each considered a separate subject.
Best In Class Education Center may increase the base fee no more than once per calendar year, providing at least 90 days' prior notice. The maximum annual increase to the base fee is $2 per student per subject per month, and the maximum base fee that Best In Class Education Center may charge at any point during the term is $15 per student per subject per month. For renewing franchisees operating a Legacy Center, the initial base fee is $4 per student per subject per month, increasing by $1 each January 31st until it equals the standard base fee charged to new franchisees.
If a student changes the number of subjects they are taking during a month, the Monthly Student User Fee is based on the total number of subjects taken by the student during the month, regardless of when the change occurs. 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.