What is the Best In Class Education Center's definition of 'Affiliate Program Sales'?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Definitions: As used in this Disclosure Document, the following capitalized terms have the meanings given to them below:
- "Affiliate Program Sales" means total gross sums you collect from Affiliate Programs conducted in connection with your Center (including amounts third-party marketing agencies, such as Groupon, receive from your customers and retain for marketing goods or services). Affiliate Program Sales do not include: (a) sales or use taxes; (b) amounts refunded to customers; or (c) Gross Sales or Special Program Sales.
Source: Item 6 — OTHER FEES (FDD pages 12–17)
What This Means (2025 FDD)
According to Best In Class Education Center's 2025 Franchise Disclosure Document, 'Affiliate Program Sales' are defined as the total gross sums a franchisee collects from Affiliate Programs conducted in connection with their center. This includes amounts that third-party marketing agencies, such as Groupon, receive from customers and retain for marketing goods or services.
However, the definition explicitly excludes certain items from 'Affiliate Program Sales'. These exclusions include sales or use taxes, amounts refunded to customers, and any revenue categorized as 'Gross Sales' or 'Special Program Sales'. This distinction is important because Best In Class Education Center franchisees pay different royalty fees based on Gross Sales, Affiliate Program Sales, and Special Program Sales.
For a prospective Best In Class Education Center franchisee, understanding this definition is crucial for accurate financial reporting and royalty calculation. It clarifies what revenue streams are subject to the 12% royalty fee applied to Affiliate Program Sales, as opposed to the 12% for Gross Sales and 6% for Special Program Sales. Franchisees need to carefully track their revenue sources to ensure they correctly categorize and report their sales figures to Best In Class Education Center, avoiding potential discrepancies or penalties.