Does Body Brain Center pay its sole member for management services?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ement amounted to $4,800 and $4,800 for the years ended December 31, 2024 and 2023, respectively.
Operating Lease 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 agreemen
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 does indeed pay its sole member, Body & Brain Yoga and Health Centers, Inc., for management services. These services encompass a range of operational support functions, including advertising, providing supplies, management oversight, secretarial services, accounting support, training, website development, and referral fees.
The expenses incurred by Body Brain Center for these management services amounted to $18,000 for both the years ended December 31, 2024, and December 31, 2023. This indicates a consistent level of financial commitment towards compensating its sole member for the provision of these essential management functions.
For a prospective franchisee, this related party transaction highlights the interconnected financial relationship between Body Brain Center and its sole member. It's important to understand the nature and value of these management services, as they directly impact the operational and financial performance of the franchise system. A potential franchisee should evaluate whether the cost of these services aligns with their perceived value and contribution to the overall success of their Body Brain Center business.