What is the Body Brain Center franchisee's obligation regarding revenues generated from the business?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.2 Royalty Fee.
On the sixth (6 th) day of each month, you agree to pay us a royalty fee equal to 10% of your Program Sales generated during the preceding month.
- (b) Contributions from You and Us. On the sixth (6 th) day of each month, you must pay us an advertising fund fee equal to 0.5% of your Program Sales for the prior month's operations.
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 are obligated to pay a royalty fee and an advertising fund fee based on their Program Sales. Specifically, the franchisee must pay a royalty fee equal to 10% of their Program Sales generated during the preceding month. This royalty fee is due on the sixth day of each month.
In addition to the royalty fee, Body Brain Center franchisees are also required to contribute to the advertising fund. This contribution is 0.5% of the franchisee's Program Sales for the prior month's operations, also due on the sixth day of each month. These funds are pooled with contributions from other franchisees, fines, and rebates received from suppliers based on franchisee purchases.
Furthermore, the FDD states that if any sums due are not received by Body Brain Center when due, or if there are insufficient funds to cover the amounts owed, the franchisee must pay interest on the past due amounts. The interest rate is the lesser of 18% per annum (prorated daily) or the highest rate permitted by the franchisee's state law. If no due date is specified, interest begins to accrue ten days after Body Brain Center bills the franchisee.