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What revenues are excluded from 'Program Sales' for a Body Brain Center franchise?

Body_Brain_Center Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

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

What This Means (2025 FDD)

Based on the 2025 Franchise Disclosure Document, the document does not specify any exclusions from 'Program Sales' for a Body Brain Center franchise. The FDD mentions that franchisees must pay a royalty fee equal to 10% of their Program Sales generated during the preceding month. However, it does not elaborate on what is included or excluded from this category.

Without a clear definition of what constitutes 'Program Sales' and what revenues are excluded, prospective Body Brain Center franchisees face uncertainty in calculating their royalty obligations. This lack of clarity could lead to disputes with the franchisor regarding royalty payments. Franchisees might overpay or underpay royalties if they misinterpret the scope of 'Program Sales'.

To gain a comprehensive understanding, a potential Body Brain Center franchisee should ask the franchisor for a precise definition of 'Program Sales.' Specifically, they should inquire about any revenues that are not subject to the 10% royalty fee. Clarification on this point is crucial for accurate financial planning and to avoid potential conflicts with Body Brain Center regarding royalty payments.

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.