When does Body Brain Center recognize revenue from owner training programs?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
osure Document.
- (c) You have requested that we allow you to attend our franchise training program prior to signing the Franchise Agreement and we have agreed to your request, but only upon the terms and conditions specified in this Agreement.
- 2 CONSENT TO ATTEND TRAINING PROGRAM. IF YOU SIGN THIS AGREEMENT AND PAY US THE TRAINING FEE IN SECTION 3, WE WILL ALLOW YOU TO ATTEND OUR FRANCHISE INITIAL TRAINING PROGRAM THAT BEGINS ON OR AFTER THE EFFECTIVE DATE.
- 3 TRAINING FEE. Prior to attending training, you must pay us an initial training fee of $10,000 (the "Training Fee"), which we will credit against your initial training fee owed if you sign a Franchis
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, the initial training fee of $10,000 is due before training begins. Body Brain Center will allow a franchisee to attend their initial training program if the franchisee signs the agreement and pays the training fee. If the franchisee notifies Body Brain Center that they will not attend the initial training program before it begins, Body Brain Center will promptly refund the training fee.
If a franchisee successfully completes the training, they have 180 days after completion to sign the Franchise Agreement. If the franchisee does not sign the Franchise Agreement within that 180-day period, or if they fail to successfully complete the training program, Body Brain Center is not obligated to offer a franchise and may keep the training fee as consideration for the training provided.
In summary, Body Brain Center collects the $10,000 training fee before the training program begins. The revenue recognition for this fee likely occurs upon completion of the training program, especially if the franchisee does not sign the franchise agreement or fails to complete the training, as Body Brain Center retains the fee in those cases. This policy ensures Body Brain Center is compensated for the training services provided, regardless of whether the franchisee proceeds with opening a Body & Brain Center.