What was the management fee expense for Body Brain Center in 2022?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ease Agreements
The Company has a premises use agreement with Body & Brain Yoga and Health Centers, Inc. The term of this agreement shall be month-to-month or until terminated as provided under this agreement. Under the terms of this agreement, the Company has the right to use the permitted portion of the premises, subject to the terms and provisions.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, the company's management services expenses amounted to $22,000 for the year ended December 31, 2022. These management services are provided by Body Brain Center's sole member and include advertising, providing supplies, management oversight, secretarial services, accounting support, training, website development, and referral fees.
This means that Body Brain Center paid $22,000 to its sole member for these combined services during 2022. For a prospective franchisee, this indicates the level of expense Body Brain Center incurs for these essential support functions. It also highlights the reliance on the sole member for these services, which could be a point to consider in terms of the stability and continuity of these services.
It's important to note that this is a related party transaction, meaning the services are provided by an entity related to Body Brain Center. While not inherently problematic, related party transactions warrant scrutiny to ensure the terms are fair and reasonable. A franchisee might want to understand how these management services are priced and whether there are alternative providers available.