What was the total royalty expense for a Body Brain Center in 2022?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
dy & Brain Centers pursuant to the terms of franchise agreements within the authorized region.
Under the terms of this agreement,
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 license expenses 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. 20% of initial franchise fees, franchise renewal fees, training fees, and transfer fees. Additionally, Body Brain Center pays 50% of the royalties it earns from its franchisees to BR Consulting, Inc. The license agreement automatically renews annually unless terminated.
For a prospective franchisee, this indicates that a portion of the royalties paid to Body Brain Center are then passed on to BR Consulting, Inc. It's important to note that this $142,586 figure represents the total licensing expenses for the company, not just the royalty portion specifically attributable to franchisee royalties. The FDD does not specify the royalty expenses for an individual Body & Brain Center franchise.