factual

What is the Body Brain Center franchisee's obligation regarding making funds available for withdrawal?

Body_Brain_Center Franchise · 2025 FDD

Answer from 2025 FDD Document

NOTE: FRANCHISEE MUST ATTACH A VOIDED CHECK FOR THE BANK ACCOUNT.

Source: Item 23 — RECEIPT (FDD pages 43–178)

What This Means (2025 FDD)

According to the 2025 Body Brain Center Franchise Disclosure Document, franchisees are required to attach a voided check for the bank account they will use for transactions with the franchisor. This likely facilitates automated payments from the franchisee to Body Brain Center for fees and other obligations.

This requirement ensures that Body Brain Center can reliably collect payments such as the royalty fee, which is 10% of Program Sales, and the advertising fund fee, which is 0.5% of Program Sales. These fees are due on the sixth day of each month. By providing a voided check, the franchisee authorizes Body Brain Center to debit the specified account for these amounts.

Franchisees should ensure that the designated bank account always has sufficient funds to cover these payments to avoid late fees. The FDD states that if there are insufficient funds in the franchisee's account to cover sums owed when due, the franchisee must pay interest on the past due amounts. This interest is calculated at the lesser of 18% per annum or the highest rate permitted by the franchisee's state law. Therefore, maintaining adequate funds in the account is crucial for compliance and to avoid additional charges.

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.