How do company-owned centers contribute to the Brand Fund for Best In Class Education Center?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
You must pay the Brand Fund fee we specify from time to time. The current Brand Fund fee is the sum of (a) 2% of Gross Sales (we may increase this amount to 3% upon 180 days' prior notice) and (b) 1% of Special Program Sales. Company-owned Centers contribute to the Brand Fund on the same basis as franchisees. However, if we modify the amount or timing of required contributions, any company-owned Center established or acquired after the modification may contribute to the Brand Fund utilizing the modified amount or timing. All monies deposited into the Brand Fund that are not used in the fiscal year in which they accrue will be utilized in the following fiscal year. Any surplus of monies may be invested and we may lend money if there is a deficit. An unaudited financial accounting of Brand Fund contributions and expenditures will be prepared annually and made available to you upon request. During the fiscal year ended December 31, 2024 we spent the marketing funds in the following manner:
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–32)
What This Means (2025 FDD)
According to the 2025 FDD, Best In Class Education Center's company-owned centers contribute to the Brand Fund on the same basis as franchisees. The current Brand Fund fee is the sum of two parts: 2% of Gross Sales, which may increase to 3% with 180 days' prior notice, and 1% of Special Program Sales.
However, the FDD states that Best In Class Education Center can modify the amount or timing of required contributions. If they do so, any company-owned center established or acquired after the modification may contribute to the Brand Fund utilizing the modified amount or timing. This implies that company-owned centers might operate under different contribution terms than franchisees if the franchisor changes the contribution requirements after the center's establishment or acquisition.
All monies deposited into the Brand Fund that are not used in the fiscal year in which they accrue will be utilized in the following fiscal year. Any surplus of monies may be invested, and Best In Class Education Center may lend money if there is a deficit. An unaudited financial accounting of Brand Fund contributions and expenditures will be prepared annually and made available to franchisees upon request.