What was the wage expense for Body Brain Center in 2023?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
nt amounted to $9,600 and $9,600 for the years ended December 31, 2023 and 2022, respectively.
Notes to the Financial Statements December 31, 2023 and 2022
NOTE C - RELATED PARTY TRANSACTIONS (CONTINUED)
Management Services Agreements
The Company pays its sole member for management services. Management services include advertising, providing supplies, management oversight, secretarial services, accounting support, training, website development and referral fees. Management services expenses amounted to $18,000 and $22,000 for t
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, the company had an employee leasing expense of $51,600 for the year ended December 31, 2023. This expense relates to an agreement with Body & Brain Yoga and Health Centers, Inc. (BBYHC). Under this agreement, Body Brain Center leases certain BBYHC employees to work part-time as Regional Coordinators, Assistant Regional Coordinators, or Support Staff. These leased employees work under the supervision of Body Brain Center while also performing services for BBYHC.
This arrangement suggests that Body Brain Center relies on shared employees from its parent company, Body & Brain Yoga and Health Centers, Inc., to fulfill certain roles. This could be a cost-effective strategy for Body Brain Center, as it avoids the full burden of directly employing these staff members. However, it also means that the availability and focus of these employees may be divided between the two entities.
For a prospective franchisee, this related-party transaction highlights the interconnectedness between Body Brain Center and its parent company. It's important to understand the potential impact of this relationship on the franchisee's operations, including the quality and availability of support staff. A franchisee should inquire about the specific roles and responsibilities of these leased employees, as well as the mechanisms in place to ensure their adequate support for the franchise.
It is important to note that the FDD only specifies the employee leasing expense, which may not represent the entirety of wage-related expenses for Body Brain Center. A potential franchisee should investigate further to understand all labor costs associated with operating a Body Brain Center franchise.