What was the amount of the advertising fund fee for Body Brain Center in 2023?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
21, 2023 ("Effective Date"), Body & Brain Yoga and Health Centers, Inc., an Arizona corporation ("Borrower") promises to pay to the order of the Company (the "Lender"), the sum of $150,000 with interest thereon at 4.93% per year. Borrower shall make a monthly payment in the amount of $
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, Body & Brain Yoga and Health Centers, Inc. paid an advertising fee to Body Brain Center of 0.5% of program sales. This oral agreement resulted in advertising fund fee income of $57,105 for the year ended December 31, 2023.
This related party transaction indicates that the parent company, Body & Brain Yoga and Health Centers, Inc., contributes to Body Brain Center's advertising fund based on a percentage of its own program sales. This contribution is separate from the advertising fees that franchisees are required to pay, which are also set at 0.5% of their program sales.
As a franchisee, it's important to understand how these related-party transactions benefit the franchise system and how the advertising funds are used to promote the Body Brain Center brand. While the parent company's contribution is a set amount, franchisee contributions are pooled into an advertising fund, which may be managed by Body Brain Center or an advertising cooperative.