How is the development fee for a Best In Class Education Center franchise calculated?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ht to construct or operate a Center until the parties have signed a Franchise Agreement and all ancillary agreements for that Center. You must develop, open and operate each Center in compliance with the Franchise Agreement and the Manual.
- 4.5. Additional Centers. You may not develop any Center other than the Centers listed in the Development Schedule unless we, in our sole discretion, permit you to enter into a new area
development agreement, which will be upon such terms that we specify, after you develop all Centers listed in the Development Schedule.
- 5. DEVELOPMENT FEE. At the time you sign this Agreement, you must pay us the development fee set forth in Part B of ATTACHMENT "A", which is calculated as the sum of the total aggregate Initial Franchise Fees for all Centers listed in the Development Schedule.
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Best In Class Education Center FDD, the development fee is calculated as the sum of the total aggregate Initial Franchise Fees for all Centers listed in the Development Schedule. This fee is paid when signing the Area Development Agreement. The development fee is considered fully earned and is nonrefundable upon the execution of the agreement.
This means that if a prospective franchisee commits to opening multiple Best In Class Education Center locations within a specific territory, they will pay a development fee that covers the initial franchise fees for each of those locations. The Development Schedule outlines the timeline for opening these centers within the Development Territory, which is a geographic area described in Part D of ATTACHMENT "A".
Best In Class Education Center requires that each Franchise Agreement be the then-current form, and the terms may vary materially from the Initial Franchise Agreement. The development fee includes and satisfies the Initial Franchise Fee imposed under each Franchise Agreement executed pursuant to the Area Development Agreement. The franchisee cannot begin construction or operation of a center until a Franchise Agreement is signed for that center.