factual

Does Best In Class Education Center have an obligation to pass supplier rebates to franchisees?

Best_In_Class_Education_Center Franchise · 2025 FDD

Answer from 2025 FDD Document

You are responsible for all fees, costs and expenses associated with acquiring, licensing, utilizing, updating and upgrading Technology Systems.

Certain Technology Systems must be purchased or licensed from third-party suppliers.

We may enter into master agreements with licensors of Third-Party Technology and charge you for amounts we pay them based on your use of their Third-Party Technology.

Source: Item 23 — RECEIPT (FDD pages 47–204)

What This Means (2025 FDD)

Based on the 2025 Franchise Disclosure Document, the excerpts provided do not specify whether Best In Class Education Center is obligated to pass supplier rebates to its franchisees. The documents do mention that franchisees are responsible for all fees, costs, and expenses associated with acquiring, licensing, utilizing, updating, and upgrading Technology Systems, and that certain Technology Systems must be purchased or licensed from third-party suppliers. It also states that Best In Class Education Center may enter into master agreements with licensors of Third-Party Technology and charge franchisees for amounts they pay them based on the franchisee's use of their Third-Party Technology.

However, the FDD excerpts do not clarify whether Best In Class Education Center is required to pass on any rebates or discounts they receive from these suppliers to their franchisees. This is an important consideration for potential franchisees as it could affect their overall costs and profitability.

Prospective franchisees should seek clarification from Best In Class Education Center regarding their policy on supplier rebates. Specifically, they should ask whether the franchisor negotiates rebates with suppliers, and if so, whether these rebates are passed on to franchisees, or if they are retained by the franchisor. Understanding this policy is crucial for accurately assessing the potential financial performance of a Best In Class Education Center franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.