What was the advertising and promotional expense for a Body Brain Center in 2023?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company pays its sole member for management services. Management services include advertising, providing supplies, management oversight, secretarial services, accounting support, training, website development and referral fees. Management services expenses amounted to $18,000 and $22,000 for the years ended December 31, 2023 and 2022, respectively.
Employee Lease Agreements
Body & Brain Yoga and Health Centers, Inc. (BBYHC).
Notes to the Financial Statements December 31, 2023 and 2022
NOTE C - RELATED PARTY TRANSACTIONS (CONTINUED)
Management Services Agreements
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to the 2025 Body Brain Center FDD, management service expenses, which include advertising, totaled $18,000 in 2023. These management services are provided to Body Brain Center, LLC by its sole member. In addition to advertising, these services also include providing supplies, management oversight, secretarial services, accounting support, training, website development, and referral fees.
Body & Brain Yoga and Health Centers, Inc. also orally agrees to pay Body Brain Center, LLC an advertising fee of 0.5% of program sales. This amounted to $57,105 for the year ended December 31, 2023. Franchisees also pay an advertising fund fee equal to 0.5% of their Program Sales, which is paid to the advertising fund on the 6th of each month.
Body Brain Center also has the option of establishing advertising cooperatives. Upon a majority vote of franchisees within the advertising cooperative, the amount of the cooperative advertising fee may be adjusted, temporarily suspended, or eliminated altogether. If Body Brain Center or an affiliate operates a majority of the Body Brain Centers within the advertising cooperative, they will only increase the cooperative advertising fee with the consent of all franchisees within the advertising cooperative.