Does Best In Class Education Center provide suggested retail pricing to franchisees?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
On each royalty fee due date, you agree to pay LBIS (or us, if we so instruct) a BCP-LMS Monthly Fee, which is calculated as the sum of: (i) 2% of the Gross Sales minus Enrichment Sales; (ii) 1% of Special Program Sales; and (iii) Monthly Student User Fees (calculated in accordance with §14.3(c) below).
- (c) Monthly Student User Fees. "Monthly Student User Fees" are calculated by multiplying a "base fee" (as set forth in the Manual) by the total number of subjects taken by students enrolled at your Center as of the last day of the immediately preceding month. The base fee is currently $8 per student per subject per month (Mathematics, English and STEM are each considered a separate "subject"); provided, however, that: (i) we may increase the base fee, not more than once per calendar year, upon at least 90 days' prior notice; (ii) the maximum annual increase to the base fee is $2 per student per subject per month; (iii) the maximum base fee that we may charge at any point during the Term is $15 per student per subject per month; and (iv) if you are a renewing franchisee who operates a Legacy Center (as defined below), your initial base fee will be $4 per student per subject per month but will increase by $1 each January 31st until it equals the standard base fee charged to new franchisees. Monthly Student User Fees applicable during the first and/or last month of the Term may be prorated if the first and/or last month of the Term are less
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the document does not explicitly state whether Best In Class Education Center provides suggested retail pricing to franchisees. However, the FDD does mention fees franchisees must pay to Best In Class Education Center. Specifically, franchisees must pay Monthly Student User Fees, which are calculated by multiplying a base fee by the total number of subjects taken by students. The base fee is currently $8 per student per subject per month, but Best In Class Education Center may increase this fee once per calendar year with at least 90 days' prior notice. The maximum annual increase is $2 per student per subject per month, and the maximum base fee that Best In Class Education Center may charge is $15 per student per subject per month.
Given the absence of information on suggested retail pricing, it is important for potential franchisees to directly ask Best In Class Education Center about their pricing policies. Understanding whether Best In Class Education Center offers pricing suggestions, or mandates specific pricing, is crucial for assessing potential revenue and profitability. Franchisees should also inquire about the flexibility they have in setting prices to accommodate local market conditions and competition.
Understanding the pricing structure and any potential limitations is essential for making an informed investment decision. Prospective franchisees should also investigate whether there are any restrictions on discounting or promotional pricing, as these factors can significantly impact their ability to attract and retain students. This information is vital for developing a sound business plan and financial projections.