What are the components of revenue from franchisees for Body Brain Center?
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.
You agree to pay us an initial franchise fee (the "Initial Franchise Fee") at the time you submit to us the site that you propose for your Business.
The Initial Franchise Fee is $10,000, except that the Intial Franchise Fee for an additional Body & Brain Center shall be $9,000 if (i) you are an existing franchisee under, and in full compliance with, an existing franchise agreement for a Body & Brain Center franchise, (ii) you and we agree to enter into a new franchise agreement for the additional Body & Brain Center; and (iii) the new franchise agreement is entered into before the termination or expiration of the existing franchise agreement.
On the sixth (6 th) day of each month, you agree to pay us a royalty fee equal to 10% of your Program Sales generated during the preceding month.
You agree to pay all other fees, expense reimbursements and other amounts specified in this Agreement in a timely manner (such as training fees, renewal fees, transfer fees, etc.).
On the sixth (6 th) day of each month, you must pay us an advertising fund fee equal to 0.5% of your Program Sales for the prior month's operations.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to the 2025 Body Brain Center Franchise Disclosure Document, Body Brain Center generates revenue from franchisees through several fees. These include the initial franchise fee, which is $10,000 for a new franchise, but $9,000 for an additional Body Brain Center if certain conditions are met, such as being an existing franchisee in full compliance and entering into a new agreement before the existing one terminates. This initial fee is non-refundable once the agreement is signed.
Body Brain Center also collects a royalty fee, which is 10% of the franchisee's Program Sales, payable on the 6th of each month. Additionally, franchisees must pay other fees such as training, renewal, and transfer fees as specified in the franchise agreement. A late fee is applied to overdue amounts, calculated as the lesser of 18% per annum or the highest rate permitted by state law, and interest begins accruing ten days after billing if no due date is specified.
Furthermore, franchisees contribute to an advertising fund, paying 0.5% of their Program Sales each month. This fund is composed of advertising fees from all franchisees, fines, and rebates from suppliers based on franchisee purchases. Company-owned Body Brain Centers also contribute to this fund on the same basis as franchisees. These various fees and royalties constitute the revenue streams Body Brain Center derives from its franchise operations.