What was the royalty expense for Body Brain Center in 2021?

According to Body Brain Center's 2025 Franchise Disclosure Document, the company's license expenses, which include royalty payments, totaled $114,101 for the year ending December 31, 2021. This expense is related to a licensing agreement Body Brain Center has with BR Consulting, Inc., where Body Brain Center pays 20% of initial franchise, renewal, training, and transfer fees, along with 50% of royalties earned from franchisees.

This means that a portion of the fees Body Brain Center collects from its franchisees is then paid to BR Consulting, Inc. for the use of intellectual property related to the Brain Education programs and the operation of Body & Brain Centers. The licensing agreement grants Body Brain Center the right to sublicense these materials to its franchisees.

For a prospective franchisee, this indicates that Body Brain Center's financial performance and royalty obligations are tied to this licensing agreement. Understanding the terms of this agreement and its potential impact on Body Brain Center's profitability is crucial. It also highlights the importance of the relationship between Body Brain Center and BR Consulting, Inc., as any changes to this agreement could affect the franchise system.

It is important to note that the $114,101 represents the total license expenses, which includes more than just royalties. A prospective franchisee may want to ask Body Brain Center for a breakdown of this figure to understand exactly how much was paid in royalties versus other licensing fees.