What were the total royalties collected by Body Brain Center in 2023?
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 the terms of this agreement, the Company pays 20% on the total of the initial franchise fee, franchise renewal fee, training fee and transfer fee and 50% of royalties earned from franchisees by the Company. Furthermore, concerning the income derived from memberships and private lessons offered by the Direct Center, a contractual royalty rate has been in effect since 2022. In 2023, a royalty rate of 3%, computed based on the operating margin rate preceding the inclusion of Direct Center's royalty payments, was applied, resulting in a payment of $2,301.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to the 2025 Body Brain Center Franchise Disclosure Document, the company's revenue from franchised centers is not explicitly detailed. However, the document does state that franchise agreements mandate franchisees to pay initial fees, training fees, continuing royalties, and advertising fund fees, all calculated as a percentage of sales.
Furthermore, Body Brain Center has a licensing agreement with BR Consulting, Inc., where Body Brain Center pays 50% of the royalties earned from franchisees to BR Consulting, Inc. In 2023, Body Brain Center paid BR Consulting, Inc. $2,301 related to income derived from memberships and private lessons offered by the Direct Center, calculated using a 3% royalty rate based on the operating margin rate before the Direct Center's royalty payments.
To determine the total royalties collected by Body Brain Center in 2023, a prospective franchisee should ask the franchisor for a detailed breakdown of royalty income, specifying the total amount collected from all franchisees and the percentage of sales used to calculate these royalties.