How much was spent on employee leasing fees for a Body Brain Center in 2022?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ent expense under the agreement amounted to $9,600 and $9,600 for the years ended December 31, 2022 and 2021, respectively.
Notes to the Financial Statements December 31, 2022 and 2021
NOTE C - RELATED PARTY TRANSACTIONS (CONTINUED)
Overall Management Services Agreements
The Company pays its sole member for management services. Management services include advertising, providing supplies, management oversight, secretarial services, accounting support, training, website development and referral fees. Overall Management services
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 spent $52,650 on employee leasing expenses in 2022. These expenses are related to an agreement with Body & Brain Yoga and Health Centers, Inc. (BBYHC). Under this agreement, Body Brain Center leases employees from BBYHC to work part-time as Regional Coordinators, Assistant Regional Coordinators, or Support Staff. These leased employees work under the supervision of Body Brain Center, in addition to their responsibilities for BBYHC.
This arrangement suggests a close relationship between Body Brain Center and Body & Brain Yoga and Health Centers, Inc., potentially offering Body Brain Center access to experienced personnel without the full burden of direct employment. However, franchisees should be aware that these related-party transactions could influence the operational costs and profitability of their franchise.
Prospective franchisees should investigate the specifics of this employee leasing agreement. Understanding the roles, responsibilities, and allocation of these leased employees is crucial. Additionally, it would be prudent to compare the costs and benefits of this leasing arrangement against the alternative of hiring employees directly. This due diligence will help franchisees assess the financial implications and operational dependencies associated with this agreement.