What must a Body Brain Center franchisee do with revenues derived from the operation of their business?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
You must sign an ACH Authorization Form (attached to the Franchise Agreement as Attachment "D"), permitting us to electronically debit your designated bank account for payment of all fees payable to us as well as any amounts that you owe to us or our affiliates for the purchase of goods or services. You must deposit all revenues derived from the operation of your Business into the bank account and ensure that there are sufficient funds available for withdrawal before each due date. You must pay us all taxes that are imposed upon us or that we are required to collect and pay by reason of the furnishing of products, intangible property (including trademarks) or services to you.
Source: Item 6 — OTHER FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, franchisees are required to manage their business revenues in a specific manner. Franchisees must deposit all revenues derived from the operation of their Body Brain Center business into a designated bank account. Furthermore, they must ensure that there are sufficient funds available in this account to cover all fees and payments due to Body Brain Center, particularly before each due date for these payments.
This requirement ensures that Body Brain Center can electronically debit the franchisee's account for various fees, including royalty fees, advertising fees, software fees, and other amounts owed for goods or services. The ACH Authorization Form, which franchisees must sign, allows Body Brain Center to electronically debit these payments. By mandating that revenues are deposited into a specific account with sufficient funds, Body Brain Center aims to streamline the payment process and minimize the risk of late or missed payments from franchisees.
This policy has practical implications for prospective Body Brain Center franchisees. It means they need to maintain diligent financial management to ensure funds are always available for scheduled debits. Franchisees should carefully track their income and expenses to avoid any overdrafts or insufficient funds issues, which could lead to late fees or other penalties. Additionally, franchisees must provide accurate and timely reports of their Program Sales and product sales to Body Brain Center, enabling the franchisor to calculate the correct amounts due. This level of financial oversight is typical in franchising, as it protects the franchisor's revenue stream and ensures consistent brand standards.