What was the total value of Body Brain Center's prepaid expenses in 2023?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
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 fr
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, as of December 31, 2023, the company had an overpayment of $7,487 to BR Consulting Inc. This amount is included within prepaid expenses on Body Brain Center's balance sheet for 2023.
This means that Body Brain Center had already paid BR Consulting Inc. $7,487 more than what was due at that time. This overpayment is considered an asset on Body Brain Center's balance sheet because the company has effectively pre-paid for future services or fees from BR Consulting Inc.
For a prospective franchisee, this detail provides insight into Body Brain Center's financial management and its relationship with BR Consulting Inc., the licensor of its intellectual property. While a relatively small amount, it demonstrates that Body Brain Center engages in transactions with related parties and that these transactions can result in prepaid expenses. A franchisee may want to inquire about the nature of these prepaid expenses and how they might affect the franchisee's own financial obligations or opportunities.