What constitutes an 'Affiliate Program' for a Best In Class Education Center franchise?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
"Affiliate Program" means any program or revenue-generating activity conducted at or in connection with your Center that is not a standard part of our System but is approved by us.
"Affiliate Program Sales" means the total gross sums you collect from all Affiliate Programs conducted in connection with your Center.
Affiliate Program Sales also include amounts that third-party marketing agencies, such as Groupon, receive and retain from your customers for marketing goods or services relating to your Affiliate Programs.
Affiliate Program Sales excludes: (a) sales or use taxes you pay to a Governmental Authority; (b) revenue you collect and subsequently refund to a customer in a bona fide refund transaction; (c) Gross Sales; and (d) Special Program Sales.
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
According to Best In Class Education Center's 2025 Franchise Disclosure Document, an Affiliate Program is defined as any revenue-generating activity or program conducted at or in connection with a franchisee's center that is not a standard part of the Best In Class Education Center system, but has been approved by the franchisor.
For a prospective franchisee, this means that while the core educational services are standardized, there's potential to introduce additional, approved programs to generate revenue. However, these programs require the franchisor's explicit approval, giving Best In Class Education Center control over the offerings associated with its brand. The franchisor may also impose specific requirements as a condition of approval.
Affiliate Program Sales include the total gross sums collected from all Affiliate Programs, including amounts retained by third-party marketing agencies like Groupon. However, Affiliate Program Sales exclude sales or use taxes, bona fide refunds, Gross Sales, and Special Program Sales. This distinction is important for franchisees as it affects how revenue is calculated and reported, especially concerning royalty payments and other financial obligations to Best In Class Education Center.