What was the amount of the initial franchise fee revenue for Body Brain Center in 2023?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise agreements provide for payment of initial fees, training fees, as well as continuing royalties and advertising fund fees to the Company based upon a percent of sales. Under this agreement, franchisees are granted a license to use certain trademarks, service marks, logos, trade dress and trade names, including the service marks "Body + Brain" and "Body & Brain Center" (collectively, the "Marks") in the operation of the franchisees.
Revenues from franchised centers consisted of:
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Body Brain Center's revenues from franchised centers are tied to franchise agreements that stipulate payments for initial fees, training fees, ongoing royalties, and advertising fund fees, all calculated as a percentage of sales. In 2023, Body Brain Center had a licensing agreement with BR Consulting, Inc., where Body Brain Center paid 20% of the total initial franchise fee, franchise renewal fee, training fee, and transfer fee to BR Consulting, Inc. License expenses under this agreement totaled $105,963 for the year ended December 31, 2023.
While the FDD mentions that 20% of the initial franchise fee is paid to BR Consulting, Inc., the document does not specifically state the total initial franchise fee revenue received by Body Brain Center in 2023. The FDD provides the total license expenses paid to BR Consulting, Inc., but this figure includes fees beyond just the initial franchise fees, such as franchise renewal fees, training fees, and transfer fees.
To determine the initial franchise fee revenue for 2023, a prospective franchisee should ask Body Brain Center for a detailed breakdown of the revenues from franchised centers, specifying the exact amount collected from initial franchise fees during that year. This information will provide a clearer picture of the franchise's financial performance and the actual revenue generated from new franchise agreements.