What is the monthly Royalty Fee for a Best In Class Education Center franchise, and how is it calculated?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
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- BCP-LMS Monthly Fee: If you are a renewing franchisee who operates a Legacy Center, your base fee will: (a) start at $4 per per student per subject per month when you sign the renewal Franchise Agreement; and (b) increase by $1 every January 1st until it is equal to the base fee paid by new franchisees (currently $8). A "Legacy Center" refers to a Center owned by a renewing franchisee who: (a) purchased the Center from our predecessor; (b) did not sign a Remote Learning Participation Addendum with Best In Class E-Academy, LLC; and (c) elects to continue to acquire and obtain educational materials from LBIS through the BC Portal without utilization of our Learning Management Systems.
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- Satellite Office Fee: If your Satellite Office is located inside your Center Territory then: (a) you pay us a $5,000 satellite office fee; and (b) the territory assigned to your Satellite Office will be the same as your Center Territory.
Source: Item 6 — OTHER FEES (FDD pages 12–17)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the monthly royalty fee for a Best In Class Education Center franchise is not explicitly detailed within the provided excerpts. The excerpts do mention a "BCP-LMS Monthly Fee" applicable to renewing franchisees operating Legacy Centers. This fee starts at $4 per student per subject per month upon signing the renewal Franchise Agreement and increases by $1 every January 1st until it equals the base fee paid by new franchisees, which is currently $8. A Legacy Center is defined as a center owned by a renewing franchisee who purchased the Center from the franchisor's predecessor, did not sign a Remote Learning Participation Addendum with Best In Class E-Academy, LLC, and elects to continue acquiring educational materials from LBIS through the BC Portal without using the Learning Management Systems.
However, the standard royalty fee structure applicable to new franchisees or those not meeting the Legacy Center criteria is not provided in the excerpts. The excerpts do mention that royalty fees apply equally to revenues generated by Satellite Offices and brick-and-mortar centers, and that these revenues must be reported separately.
To fully understand the royalty fee structure, a prospective franchisee should inquire directly with Best In Class Education Center about the specific royalty fee percentage or calculation method applied to Gross Sales for new franchisees and those not operating Legacy Centers. This information is crucial for assessing the ongoing costs and profitability of the franchise.