What was the amount of prepaid expenses for Body Brain Center as of December 31, 2023?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
the Company pays 20% on the total of the initial franchise fee, franchise renewal fee, training fee and transfer fee and 50% of royalties earned from fr
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to the 2025 Body Brain Center FDD, as of December 31, 2023, the company overpaid $7,487 to BR Consulting Inc., which is included in prepaid expense in the accompanying 2023 balance sheet. This overpayment is related to a licensing agreement between Body Brain Center and BR Consulting, Inc.
The licensing agreement grants Body Brain Center a non-exclusive license to use intellectual property rights related to Brain Education programs and the operation of Body Brain Centers. Under the terms of this agreement, Body Brain Center pays 20% of initial franchise fees, franchise renewal fees, training fees, and transfer fees, as well as 50% of royalties earned from franchisees.
This means that Body Brain Center's balance sheet for 2023 includes an overpayment of $7,487 to BR Consulting Inc. as a prepaid expense. A prospective franchisee should be aware of these related-party transactions and licensing agreements, as they can impact the financial performance and obligations of Body Brain Center.