How does Body Brain Center distribute funds generated through coupon programs to franchisees?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
All proceeds from coupon deals or discount and referral programs will either be credited towards your obligation to pay royalty fees or we may send you a check. To the extent these proceeds for a given month exceed your required royalty fee for that month, the excess amount will be carried forward and applied against your required royalty fee in the subsequent month. If your Franchise Agreement expires and, as of the expiration date, the amount of the proceeds exceeds the total credits you have received for your required royalty fees, the excess amounts will be refunded to you within 30 days after the expiration of the Franchise Agreement. We will notify you of all coupon or discount and referral transactions pertaining to your Business in a timely manner.
Source: Item 11 — FRANCHISOR'S ASSISTANCE**, ADVERTISING, **COMPUTER SYSTEMS AND TRAINING (FDD pages 20–29)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, the funds generated through coupon programs are distributed to franchisees in one of two ways. First, the proceeds can be credited towards the franchisee's obligation to pay royalty fees. Alternatively, Body Brain Center may send the franchisee a check for the proceeds.
If the coupon proceeds for a given month exceed the franchisee's required royalty fee for that month, the excess amount is carried forward and applied against the royalty fee in the subsequent month. This means franchisees won't receive immediate payment for overages but will see a reduction in future royalty obligations.
In the event that the Franchise Agreement expires and there are still excess coupon proceeds that haven't been fully credited towards royalty fees, Body Brain Center will refund the excess amounts to the franchisee within 30 days after the expiration date. Body Brain Center also commits to notifying franchisees of all coupon or discount and referral transactions pertaining to their business in a timely manner, ensuring transparency in the process.