What is included in 'Special Program Sales' for a Best In Class Education Center franchise?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPT]
"Special Program Sales" means the total gross sums you collect from all After-School Programs and Summer Camp Programs conducted in connection with your Center.
Special 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 After-School Programs and Summer Camp Programs.
Special 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) Affiliate Program Sales; and (d) Gross Sales.
"Successor Agreement" means our then-current form of Best In Class Education Center Franchise Agreement you must sign pursuant to §4.2 in connection with a renewal of your franchise rights.
"Summer Camp Program" means the optional educational program you may offer at your Center during the Summer whereby students visit every day, five (5) days per week, for at least two and one-half (2.5) hours per day, and receive one (1) packet of Math and one (1) packet of English each week.
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Best In Class Education Center Franchise Disclosure Document, Special Program Sales include the total gross income a franchisee collects from After-School Programs and Summer Camp Programs conducted at their center. It also includes amounts that third-party marketing agencies, like Groupon, receive and retain from customers for marketing these After-School and Summer Camp Programs.
However, Special Program Sales exclude certain financial activities. These exclusions are sales or use taxes paid to a Governmental Authority, revenue refunded to a customer in a legitimate refund transaction, Affiliate Program Sales, and Gross Sales.
For a prospective Best In Class Education Center franchisee, understanding what constitutes Special Program Sales is important for accurately calculating revenue and potential royalty fees. Knowing the exclusions ensures that franchisees are not paying royalties on amounts like taxes or refunds, which do not contribute to the franchise's actual income.