What was the effect of discounting on Body Brain Center's lease payments?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to participate in the Online Payment Program.
By participating, you agree that: (i) we will list your Center on our website or a third-party website as a Body and Brain Center that is participating in the Online Payment Program; (ii) we will allow existing, new, or potential customers of your Center to purchase Introductory Class sessions (introductory one-on-one sessions), Trial Class sessions (introductory group classes), Group Classes, or Private Classes through our website or a thirdparty website by electronic payment; and (iii) we may offer a discount for online payment, provided that the minimum required payment will be equal to or exceed 50% of our then-current suggested retail pricing for Introductory Class sessions, Trial Class sessions, Group Classes, or Private Classes, as applicable.
The electronic payments made by customers through the Online Payment Program (referred to as "Online Payment Proceeds") attributable to purchases of Introductory Class sessions, Trial Class sessions, Group Classes, and Private Classes at your Center will be included in your reporting of Program Sales.
All Online Payment Proceeds collected by us pertaining to your Center will be paid to you.
We will notify you of all online payment transactions on our website pertaining to your Center in a timely manner.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, franchisees participating in the Online Payment Program may offer discounts for online payments. However, the minimum payment must be equal to or exceed 50% of Body Brain Center's suggested retail pricing for Introductory Class sessions, Trial Class sessions, Group Classes, or Private Classes, as applicable.
While the FDD discusses the possibility of discounting program sales through the Online Payment Program, it does not specify any direct impact or effect of these discounts on Body Brain Center's lease payments. The document mentions that the company leases its operating facility under a non-cancellable operating lease and has a premises use agreement with Body & Brain Yoga and Health Centers, Inc.
Prospective franchisees should inquire with Body Brain Center about how these online payment discounts may indirectly affect revenue available for covering fixed costs like lease payments. Understanding the potential impact of discounts on overall profitability is crucial for assessing the financial viability of a Body Brain Center franchise.