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What commission rate does Body Brain Center receive for the Brain Management Training program?

Body_Brain_Center Franchise · 2025 FDD

Answer from 2025 FDD Document

ting Body & Brain Center.

Notes to the Financial Statements December 31, 2024 and 2023

NOTE D - COMMITMENTS AND CONTINGENCIES (CONTINUED)

Licensing Agreement (Continued)

Licensor grants to Licensee, for the term of agreement, a non-exclusive license to use the licensed materials for distribution of Brain Education Programs and/or operation of Body & Brain Center within the authorized region and the right to sublicense the licensed materials to franchisees for the sole purpose of operating Body & Brain Centers pursuant t

Source: Item 23 — RECEIPT (FDD pages 43–178)

What This Means (2025 FDD)

The 2025 Franchise Disclosure Document for Body & Brain Center indicates that Body & Brain Center's commission structure is tied to a licensing agreement with BR Consulting, Inc. Under the terms of this agreement, Body & Brain Center pays BR Consulting, Inc. 20% of the total of the initial franchise fee, franchise renewal fee, training fee, and transfer fee. Additionally, Body & Brain Center pays BR Consulting, Inc. 50% of the royalties earned from franchisees.

This means that a significant portion of the revenue generated by Body & Brain Center through franchise fees and royalties is paid to BR Consulting, Inc. The specific commission rate that Body & Brain Center receives for the Brain Management Training program is not explicitly stated. However, the document does state that the Licensor grants to Licensee, for the term of agreement, a non-exclusive license to use the licensed materials for distribution of Brain Education Programs and/or operation of Body & Brain Center within the authorized region and the right to sublicense the licensed materials to franchisees for the sole purpose of operating Body & Brain Centers pursuant to the terms of franchise agreements within the authorized region.

For a prospective franchisee, this highlights the importance of understanding the financial relationship between Body & Brain Center and BR Consulting, Inc. The franchisee should inquire about how these payments affect the overall profitability of Body & Brain Center and whether these costs could impact the support and services provided to franchisees. It is important to note that the royalty rate of 3% is computed based on the operating margin rate preceding the inclusion of Direct Center's royalty payments.

Prospective franchisees should seek clarification from Body & Brain Center regarding the specific commission or revenue sharing arrangements related to the Brain Management Training program and how these arrangements might affect their own financial obligations and potential earnings. Understanding these details is crucial for making an informed decision about investing in a Body & Brain Center franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.