What revenue sources does Body Brain Center derive from its franchisees?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise agreements provide for payment of initial fees, training fees, as well as continuing royalties and advertising fund fees to the Company based upon a percent of sales. Under this agreement, franchisees are granted a license to use certain trademarks, service marks, logos, trade dress and trade names, including the service marks "Body + Brain" and "Body & Brain Center" (collectively, the "Marks") in the operation of the franchisees.
Revenues from franchised centers consisted of:
13. FEES
- 13.1 Initial Franchise Fee.
You agree to pay us an initial franchise fee (the "Initial Franchise Fee") at the time you submit to us the site that you propose for your Business.
The Initial Franchise Fee is $10,000, except that the Intial Franchise Fee for an additional Body & Brain Center shall be $9,000 if (i) you are an existing franchisee under, and in full compliance with, an existing franchise agreement for a Body & Brain Center franchise, (ii) you and we agree to enter into a new franchise agreement for the additional Body & Brain Center; and (iii) the new franchise agreement is entered into before the termination or expiration of the existing franchise agreement.
The Initial Franchise Fee shall be fully earned by us and non-refundable once this Agreement has been signed.
The Initial Franchise Fee will be waived if the option to convert to a Body & Brain Center franchise is exercised by a Body & Brain home-based franchisee who has satisfied all of the conditions for exercising the option, including payment of the applicable conversion fee, set out in the franchise agreement for the Body & Brain home-based franchise.
- 13.2 Royalty Fee.
On the sixth (6 th) day of each month, you agree to pay us a royalty fee equal to 10% of your Program Sales generated during the preceding month.
- 13.3 Other Fees and Payments.
You agree to pay all other fees, expense reimbursements and other amounts specified in this Agreement in a timely manner (such as training fees, renewal fees, transfer fees, etc.).
- 13.4 Late Fee.
If any sums due under this Agreement have not been received by us when due (or there are insufficient funds in your Account to cover any sums owed to us when due) then, in addition to those sums, you must pay us interest on the amounts past due at the rate equal to the lesser of 18% per annum (prorated on a daily basis), or the highest rate permitted by your State's law.
If no due date has been specified by us, then interest begins to run ten (10) days after we bill you.
- (b) Contributions from You and Us. On the sixth (6 th) day of each month, you must pay us an advertising fund fee equal to 0.5% of your Program Sales for the prior month's operations.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to the 2025 Body Brain Center Franchise Disclosure Document, Body Brain Center receives revenue from several franchisee fees. These include the initial franchise fee, royalty fees based on a percentage of program sales, training fees, renewal fees, transfer fees, and advertising fees.
The initial franchise fee is $10,000, but it is reduced to $9,000 for existing franchisees opening additional locations under specific conditions. This fee is non-refundable once the franchise agreement is signed. The royalty fee is 10% of the franchisee's Program Sales, payable monthly. Franchisees also contribute to an advertising fund, paying 0.5% of their Program Sales each month.
In addition to these standard fees, Body Brain Center may also charge late fees for overdue payments, calculated as the lesser of 18% per annum or the highest rate permitted by state law. These various fees represent the primary ways Body Brain Center generates income from its franchise operations, covering initial investment, ongoing sales, brand maintenance, and advertising efforts.
Prospective franchisees should be aware of these fees and factor them into their financial projections. Understanding the fee structure is crucial for assessing the profitability and sustainability of a Body Brain Center franchise.