Can Best In Class Education Center franchisees deviate from the suggested retail pricing?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
On each royalty fee due date, you agree to pay LBIS (or us, if we so instruct) a BCP-LMS Monthly Fee, which is calculated as the sum of: (i) 2% of the Gross Sales minus Enrichment Sales; (ii) 1% of Special Program Sales; and (iii) Monthly Student User Fees (calculated in accordance with §14.3(c) below).
- (c) Monthly Student User Fees. "Monthly Student User Fees" are calculated by multiplying a "base fee" (as set forth in the Manual) by the total number of subjects taken by students enrolled at your Center as of the last day of the immediately preceding month. The base fee is currently $8 per student per subject per month (Mathematics, English and STEM are each considered a separate "subject"); provided, however, that: (i) we may increase the base fee, not more than once per calendar year, upon at least 90 days' prior notice; (ii) the maximum annual increase to the base fee is $2 per student per subject per month; (iii) the maximum base fee that we may charge
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the ability of a Best In Class Education Center franchisee to deviate from suggested retail pricing is not explicitly addressed in the provided excerpts. However, the FDD does mention "Monthly Student User Fees" which are calculated by multiplying a "base fee" (as set forth in the Manual) by the total number of subjects taken by students enrolled at your Center. The base fee is currently $8 per student per subject per month. This fee can be increased by Best In Class Education Center, but not more than once per calendar year, with at least 90 days' prior notice. The maximum annual increase to the base fee is $2 per student per subject per month, and the maximum base fee that Best In Class Education Center may charge at any point during the Term is $15 per student per subject per month.
Given that the franchisor sets a base fee that is used to calculate the monthly fees, it is important for a prospective franchisee to understand the extent to which they can set their own prices for the services they offer. The FDD excerpts do not specify whether franchisees can charge more or less than a standard rate based on the base fee.
A prospective Best In Class Education Center franchisee should inquire about the flexibility they have in setting prices for their services. Specifically, they should ask whether they are allowed to offer discounts, charge premium rates for specialized services, or otherwise adjust pricing to suit local market conditions. Understanding the pricing structure and any limitations on pricing flexibility is crucial for assessing the potential profitability and competitiveness of a Best In Class Education Center franchise.