factual

What constitutes 'Program Sales' for a Body Brain Center franchise?

Body_Brain_Center Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (2) "Program Sales" means all gross sums that you receive from all services sold in or at your Business (including memberships and referral fees). "Program Sales" do not include (i) revenues from product sales, (ii) amounts refunded to customers or (iii) sales and use taxes. Any amounts that are included in Program Sales for 1 reporting period but are subsequently refunded will be deducted from your Program Sales for the next reporting period. You must provide us with reports of your Program Sales as well as your product sales. You must record all sales information on the same day that the sale takes place.

Source: Item 6 — OTHER FEES (FDD pages 11–14)

What This Means (2025 FDD)

According to Body Brain Center's 2025 Franchise Disclosure Document, 'Program Sales' are defined as the total gross income a franchisee receives from all services sold at their Body Brain Center location. This includes revenue from memberships and referral fees. However, 'Program Sales' specifically exclude revenues from product sales, any amounts refunded to customers, and sales and use taxes collected.

This definition is important because several fees payable to Body Brain Center are calculated as a percentage of Program Sales. For example, the royalty fee is 10% of monthly Program Sales, and the advertising fund fee is 0.5% of Program Sales. The cooperative advertising fee, if applicable, is also calculated as a percentage of Program Sales, up to 0.5% or as otherwise established by the cooperative.

The FDD states that any amounts included in Program Sales for one reporting period that are subsequently refunded will be deducted from Program Sales in the next reporting period. Body Brain Center requires franchisees to provide reports of both Program Sales and product sales and to record all sales information on the same day the sale occurs. This ensures accurate calculation and reporting of the fees owed to Body Brain Center.

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.