factual

How often are royalties and advertising fund fees recognized by Body Brain Center?

Body_Brain_Center Franchise · 2025 FDD

Answer from 2025 FDD Document

Royalties and advertising fund fees are recognized on a monthly basis and are based upon an agreed upon percentage of franchisees' program sales, as defined in the franchise agreement. Advertising fund fees are restricted for the purpose of marketing, sales promotion and promotional materials and are included in the accompanying balance sheets as restricted cash.

Source: Item 23 — RECEIPT (FDD pages 43–178)

What This Means (2025 FDD)

According to Body Brain Center's 2025 Franchise Disclosure Document, both royalties and advertising fund fees are recognized on a monthly basis. These fees are calculated as a percentage of each franchisee's program sales, as defined in the franchise agreement. This means that Body Brain Center franchisees can expect to remit these payments to the franchisor every month, based on their revenue from program sales.

The advertising fund fees collected are specifically earmarked for marketing, sales promotion, and promotional materials. These funds are held as restricted cash on the company's balance sheets, ensuring they are used only for their intended purpose. This arrangement provides some assurance to franchisees that their contributions to the advertising fund will directly support marketing efforts.

This monthly recognition of royalties and advertising fees is a standard practice in franchising, allowing Body Brain Center to maintain a consistent revenue stream and fund ongoing marketing initiatives. Prospective franchisees should carefully review the franchise agreement to fully understand how 'program sales' are defined, as this definition will directly impact the calculation of these monthly fees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.