How is the monthly royalty fee calculated for a Best In Class Education Center franchise?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
matters on which members are authorized to vote.
14. FEES
- 14.1. Initial Franchise Fee. You agree to pay us the initial franchise fee set forth in Part F of ATTACHMENT "A" in one lump sum at the time you sign this Agreement. The initial franchise fee is fully earned by us and nonrefundable upon
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, franchisees are required to pay a monthly royalty fee. This fee is due on the seventh day of each month and is calculated as the greater of two options. The first option is a flat fee of $250. The second option is a variable fee based on a percentage of different types of sales.
The variable royalty fee is the sum of 12% of Gross Sales, 12% of Affiliate Program Sales, and 6% of Special Program Sales generated during the previous month. Therefore, if a Best In Class Education Center franchise has low sales, the franchisee will pay the minimum $250 royalty fee. However, as sales increase, the royalty fee will be based on the percentages outlined in the Franchise Agreement.
For a prospective franchisee, it's important to understand how Best In Class Education Center defines 'Gross Sales', 'Affiliate Program Sales', and 'Special Program Sales' to accurately forecast royalty payments. Franchisees should also consider that the royalty fee structure incentivizes higher sales, as the fee increases proportionally with revenue. It is also important to note that the royalty fee is paid on the 7th day of each month, so franchisees should ensure they have sufficient cash flow to cover this expense.