Is the development fee for a Best In Class Education Center franchise refundable?

According to the 2025 Best In Class Education Center FDD, the development fee is nonrefundable. The FDD states that when signing the area development agreement, the franchisee must pay a development fee. This fee is calculated as the sum of the initial franchise fees for all centers listed in the Development Schedule. Once the agreement is executed, the development fee is considered fully earned by Best In Class Education Center and is nonrefundable to the franchisee.

This means that a prospective Best In Class Education Center area developer should be certain of their plans and financial capabilities before signing the agreement and paying the development fee. Since the fee covers the initial franchise fees for multiple centers, the amount could be substantial, and the franchisee will not be able to recover it should they later decide not to develop all the centers.

This nonrefundable policy is relatively common in area development agreements within the franchise industry, as it compensates the franchisor for granting the developer exclusive rights to a specific territory and for the initial work involved in setting up the development plan. Franchisees should carefully review the Development Schedule and their ability to meet the development obligations before committing to the agreement and paying the development fee to Best In Class Education Center.