When is the Brain Balance royalty payment due to the company?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
6.03. Late Payment
- (a) If FRANCHISEE shall fail to pay to COMPANY when due any Royalty, Advertising Fund contribution, or any other payment required to be made pursuant to this Agreement, interest shall accrue on the unpaid amount commencing fifteen (15) days after the due date, at a rate of two percent (2%) per month compounded or the highest rate permitted under applicable law, whichever is less.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, the timing of royalty payments is not explicitly detailed within the provided excerpts. The document does mention that if a franchisee fails to pay any royalty when due, interest will accrue on the unpaid amount commencing fifteen days after the due date.
While the FDD excerpts do not specify the exact due date for royalty payments, they do outline the consequences of late payments, including accruing interest. Additionally, the franchisee's contribution to the advertising fund, which is 2% of gross revenue with a minimum of $200 monthly, is due at the same time and in the same manner as the royalty.
To fully understand the specific timing and method of royalty payments, a prospective Brain Balance franchisee should consult the complete Franchise Agreement and Operations Manual. It would be prudent to ask the franchisor directly about the exact due dates, acceptable payment methods, and any potential grace periods for royalty payments to avoid late fees or other penalties.