Will Best In Class Education Center provide a financial accounting of the Brand Fund?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
You must pay the Brand Fund fee we specify from time to time. The current Brand Fund fee is the sum of (a) 2% of Gross Sales (we may increase this amount to 3% upon 180 days' prior notice) and (b) 1% of Special Program Sales. Company-owned Centers contribute to the Brand Fund on the same basis as franchisees. However, if we modify the amount or timing of required contributions, any company-owned Center established or acquired after the modification may contribute to the Brand Fund utilizing the modified amount or timing. All monies deposited into the Brand Fund that are not used in the fiscal year in which they accrue will be utilized in the following fiscal year. Any surplus of monies may be invested and we may lend money if there is a deficit. An unaudited financial accounting of Brand Fund contributions and expenditures will be prepared annually and made available to you upon request. During the fiscal year ended December 31, 2024 we spent the marketing funds in the following manner:
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–32)
What This Means (2025 FDD)
According to Best In Class Education Center's 2025 Franchise Disclosure Document, an unaudited financial accounting of Brand Fund contributions and expenditures will be prepared annually. This accounting will be made available to franchisees upon request.
For a prospective Best In Class Education Center franchisee, this means they have the right to request and review how the Brand Fund is being managed and spent. The Brand Fund is supported by franchisee contributions, specifically 2% of Gross Sales, which may increase to 3% with 180 days prior notice, and 1% of Special Program Sales. Company-owned centers also contribute to the Brand Fund on the same basis as franchisees.
It's important to note that the financial accounting is unaudited, meaning it has not been verified by an independent accounting firm. While this provides some transparency, franchisees should be aware of the limitations of an unaudited statement. Franchisees should also be aware that Best In Class Education Center has complete control and discretion over all advertising programs paid for by the Brand Fund.