What was the rent expense for a Body Brain Center in 2021?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ake a monthly payment in the amount of $432.50 for interest. The unpaid principal shall be payable in full on or before September 21, 2023 (the "Due Date").
NOTE C - RELATED PARTY TRANSACTIONS
Body & Brain Yoga and Health Centers, Inc.
Body & Brain Yoga and Health Centers, Inc. is the sole member of the Company and is engaged in the business of operating yoga, tai-chi and other mind-body practice.
Advertising Fund Fee Income
Body & Brain Yoga and Health Centers, Inc. orally agrees to pay the Company an advertising fee of 0.5% of program sales for Body & Brain Yoga and Health Centers, Inc. The advertising fund fee income amounts to $54,649, for the year ended December 31, 2022.
Software Service Agreement
On March 1, 2015 ("Effective Date"), the Company (Client) has a software service agreement with Body & Brain Yoga and Health Centers, Inc. (Provider). Provider is engaged in the business of providing yoga and wellness classes and programs, and is experienced in developing and maintaining online software specifically designed for the yoga and wellness industry. This agreement shall be commenced as of the Effective date and shall continue for a period of 1 year or until terminated by the mutual consent of the parties. Under the terms of this agree
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, the rent expense for the company's premises use agreement with Body & Brain Yoga and Health Centers, Inc. was $9,600 in 2021. The agreement between the two entities stipulates that Body Brain Center has the right to use a portion of the premises under specific terms and provisions. The term of the agreement continues for a period of one month or until terminated as provided under the agreement.
This $9,600 figure reflects the rent expense specifically tied to the premises use agreement with Body & Brain Yoga and Health Centers, Inc. It is important to note that this may not represent the entirety of Body Brain Center's rent obligations, as the company also leases its operating facility under a separate non-cancellable operating lease. The FDD does not specify the rent expense associated with the operating facility lease for 2021.
For a prospective franchisee, this indicates that Body Brain Center has a consistent, predictable rent expense related to its agreement with Body & Brain Yoga and Health Centers, Inc. However, it's crucial to investigate the terms of both the premises use agreement and the operating facility lease to fully understand the company's overall rental commitments and how these costs might impact profitability. A potential franchisee should inquire about the details of the operating facility lease, including the monthly rent, lease duration, and any potential escalations, to gain a comprehensive view of Body Brain Center's total rent expenses.