How much did Body Brain Center pay in license expenses under the agreement in 2023?

According to the 2025 Body Brain Center FDD, the company's license expenses under the agreement with BR Consulting, Inc. totaled $105,963 for the year ended December 31, 2023. This agreement, which automatically renews annually unless terminated, grants Body Brain Center a non-exclusive license to use intellectual property related to Brain Education programs and the operation of Body & Brain Centers within an authorized region.

Under the licensing agreement, Body Brain Center is required to pay BR Consulting, Inc. a percentage of certain fees and royalties. Specifically, Body Brain Center pays 20% of the total initial franchise fee, franchise renewal fee, training fee, and transfer fee. Additionally, they pay 50% of the royalties earned from franchisees. For income derived from memberships and private lessons offered by the Direct Center, a 3% royalty rate was applied in 2023, resulting in a payment of $2,301.

Prospective franchisees should understand that these licensing expenses are a significant part of Body Brain Center's financial obligations. The expenses reflect the cost of using the intellectual property necessary to operate the franchise. It is important to note that as of December 31, 2023, Body Brain Center had overpaid BR Consulting Inc. by $7,487, which was recorded as a prepaid expense on the balance sheet.