What was the management fee expense for a 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 management services expenses for the company amounted to $22,000 for the year ended December 31, 2022. These management services are paid to the sole member of Body Brain Center and include advertising, providing supplies, management oversight, secretarial services, accounting support, training, website development, and referral fees.
This expense is a related-party transaction, meaning the payment is made to an entity with a close relationship to Body Brain Center. For a prospective franchisee, this indicates that a portion of the company's expenses is directed towards compensating its sole member for a variety of services that are essential to the business operations.
It's important to note that this figure reflects the expenses incurred by the company itself, not necessarily the expenses that an individual Body Brain Center franchisee would incur. However, understanding the franchisor's expenses can provide insight into the overall financial structure and potential costs associated with the franchise system.