Is the initial franchise fee for a Best In Class Education Center franchise refundable?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to pay us, in one lump sum, a satellite office fee in the amount designated in Part C of ATTACHMENT A to this Addendum (the "Satellite Office Fee").
The Satellite Office Fee is earned in full upon receipt and is nonrefundable.
- 9. CONVERSION TO DEDICATED BRICK AND MORTAR CENTER. With our prior written approval, which may be withheld in our commercially reasonable discretion, you may convert your Satellite Office to a dedicated brick and mortar BEST IN CLASS EDUCATION CENTER® following the opening of the Satellite Office. In order to effectuate such a conversion you must: (a) sign our then-current form of Franchise Agreement for the converted Satellite Office; and (b) pay us an additional initial franchise fee equal to the difference between the Satellite Office Fee paid for the Satellite Office and our then-current initial franchise fee that would apply to a dedicated brick and mortar BEST IN CLASS EDUCATION CENTER®.
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Best In Class Education Center FDD, the initial franchise fee for a satellite office is nonrefundable. Specifically, the FDD states that the "Satellite Office Fee is earned in full upon receipt and is nonrefundable." This means that once a prospective franchisee pays the satellite office fee to Best In Class Education Center, those funds are not returned under any circumstances.
However, the FDD also describes an option to convert a satellite office to a dedicated brick and mortar Best In Class Education Center location. To do so, a franchisee must sign the then-current franchise agreement and pay an additional initial franchise fee. This additional fee is equal to the difference between the satellite office fee already paid and the initial franchise fee for a standard Best In Class Education Center.
Therefore, while the initial satellite office fee itself is nonrefundable, the amount can be credited towards the initial franchise fee for a full Best In Class Education Center franchise if the franchisee chooses to expand to a brick and mortar location. This provides a potential pathway to leverage the initial investment, although it requires a further financial commitment.