What was the royalty expense for Body Brain Center in 2022?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ual basis until terminated.
BR consulting, Inc. is the owner of all the intellectual property rights including, but not limited to, logos, trademarks, service marks, copyrights, and trade secrets which are related with Brain Education programs and/or operating Body & Brain Center. Licensor grants to Licensee, for the term of agreement, a non-exclusive license to use the licensed materials for distribution of Brain Education Programs and/or operation of Body & Brain Center within the authorize
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, the license expenses, which include royalty payments, totaled $142,586 for the year ended December 31, 2022. This expense is related to a licensing agreement Body Brain Center has with BR Consulting, Inc., which owns the intellectual property rights associated with the Brain Education programs and the operation of Body & Brain Centers.
Under the licensing agreement, Body Brain Center pays BR Consulting, Inc. a percentage of various fees and royalties. Specifically, Body Brain Center pays 20% of the initial franchise fee, franchise renewal fee, training fee, and transfer fee, along with 50% of the royalties earned from franchisees. Additionally, since 2022, a contractual royalty rate has been applied to income derived from memberships and private lessons offered by the Direct Center.
For a prospective franchisee, this indicates that Body Brain Center's financial performance is tied to its licensing agreement with BR Consulting, Inc. The $142,586 paid in 2022 represents a significant expense for Body Brain Center. It is important to note that the FDD also mentions that Body Brain Center owed $9,906 to BR Consulting Inc. as of December 31, 2022, which was included in accounts payable.