When is the royalty fee due date for a Best In Class Education Center franchise?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
matters on which members are authorized to vote.
14. FEES
- 14.1. Initial Franchise Fee. You agree to pay us the initial franchise fee set forth in Part F of ATTACHMENT "A" in one lump sum at the time you sign this Agreement. The initial franchise fee is fully earned by us and nonrefundable upon
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Best In Class Education Center Franchise Disclosure Document, the royalty fee is due on the seventh day of each month. This is referred to as the "royalty fee due date." The monthly royalty fee is calculated as the greater of $250 or the sum of 12% of Gross Sales, 12% of Affiliate Program Sales, and 6% of Special Program Sales generated during the prior month.
In practical terms, a Best In Class Education Center franchisee must remit their royalty payment by the 7th of each month. The amount due is based on the sales figures from the previous month, with the calculation considering different revenue streams such as Gross Sales, Affiliate Program Sales, and Special Program Sales. The franchisee needs to accurately track these sales categories to ensure correct royalty calculation.
It's important to note that the royalty fee is not a fixed amount but is dependent on the center's performance. If the calculated percentage-based royalty is less than $250, the franchisee still needs to pay the minimum $250. This structure ensures that Best In Class Education Center receives a minimum royalty amount regardless of a center's monthly revenue. Franchisees should factor this ongoing royalty obligation into their financial projections and business planning.