What is the Body Brain Center franchisee's obligation regarding other fees and payments?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.3 Other Fees and Payments.
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.).
- 13.4 Late Fee.
If any sums due under this Agreement have not been received by us when due (or there are insufficient funds in your Account to cover any sums owed to us when due) then, in addition to those sums, you must pay us interest on the amounts past due at the rate equal to the lesser of 18% per annum (prorated on a daily basis), or the highest rate permitted by your State's law.
If no due date has been specified by us, then interest begins to run ten (10) days after we bill you.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to the 2025 Body Brain Center Franchise Disclosure Document, franchisees must pay all other fees, expense reimbursements, and other amounts specified in the Franchise Agreement in a timely manner. These include training fees, renewal fees, and transfer fees. This means that in addition to the initial franchise fee and ongoing royalty fees, Body Brain Center franchisees should anticipate and budget for these additional expenses as outlined in their agreement.
If a Body Brain Center franchisee fails to make payments on time, or if there are insufficient funds to cover the amounts owed, the franchisee must pay interest on the past due amount. The interest rate will be the lesser of 18% per annum, prorated daily, or the highest rate permitted by state law. If Body Brain Center does not specify a due date, interest begins to accrue ten days after the franchisee is billed.
This late fee policy is fairly standard in franchising, designed to encourage timely payments and compensate the franchisor for the administrative burden and potential cash flow issues caused by late payments. Prospective Body Brain Center franchisees should ensure they understand all potential fees and payment terms outlined in the Franchise Agreement to avoid incurring late fees and interest charges.