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What should a prospective Best In Class Education Center franchisee do regarding costs and expenses?

Best_In_Class_Education_Center Franchise · 2025 FDD

Answer from 2025 FDD Document

The financial performance representation in Tables 3 and 4 does not reflect every cost or expense that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit. You should conduct an independent investigation of the costs and expenses you will incur in operating your Center. Franchisees or former franchisees, listed in the Franchise Disclosure Document, may be one source of this information.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 41–44)

What This Means (2025 FDD)

According to the 2025 Best In Class Education Center FDD, prospective franchisees should conduct an independent investigation of all costs and expenses they might incur while operating their own center. The FDD includes financial performance representations based on historical data from qualifying centers for the 2024 calendar year. However, these representations do not reflect every cost or expense that must be deducted from gross revenue to determine net income or profit. The franchisor suggests that potential franchisees consult current or former franchisees, whose contact information is listed in the Franchise Disclosure Document, as one source of information.

Best In Class Education Center's FDD includes data from a survey of selected expenses from qualifying centers. These selected expenses include general and administrative costs (such as office supplies, business insurance premiums, state and local taxes, and utilities), instructor and teaching assistant labor costs (excluding owner or management salaries), marketing expenses spent directly by franchisees (excluding brand fund contributions), and rent payments. The financial performance representation in Tables 3 and 4 does not reflect every cost or expense that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

It is important for prospective Best In Class Education Center franchisees to understand that the franchisor does not make any financial performance representations beyond what is included in Item 19 of the FDD. If a potential franchisee receives any financial performance information or projections of future income from other sources, they should report it to Best In Class Education Center's management, the Federal Trade Commission, and the appropriate state regulatory agencies. By taking these steps, potential franchisees can make informed decisions about the financial aspects of investing in 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.