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Description
Investment Icon

What Are the Initial Investment Requirements for a Best Brains Franchise?

To open a Best Brains franchise, you will need to prepare for a range of initial investment costs. The franchise fee is set at $14,500, and the total initial investment can vary significantly, ranging from $26,350 to $130,800. Additionally, you should have a net worth between $250,000 and $500,000 to meet the financial criteria for potential franchisees. This investment lays the groundwork for your educational center, which focuses on providing quality learning experiences for children.

Fees Icon

What Are the Ongoing Fees Associated with Best Brains?

As a Best Brains franchisee, you will be responsible for ongoing fees that contribute to the support and marketing of the brand. A royalty fee of 14% of your gross sales is required, along with a marketing fee of 1%. These fees are essential for maintaining brand integrity and ensuring that you have access to effective marketing strategies, helping you attract and retain customers in your community.

Revenue Icon

What Are the Financial Performance Metrics for Best Brains?

Best Brains franchises have demonstrated promising financial performance. The average annual revenue per unit is reported at approximately $1,164,980, with some units achieving revenues as high as $1,920,977. The average EBITDA stands at 60.73%, indicating a healthy profit margin after operating expenses. With a breakeven time of just 12 months, franchisees can expect a relatively quick return on their investment, making it an attractive opportunity for aspiring entrepreneurs.

Breakeven Icon

What Growth Trends Are Notable in the Best Brains Franchise?

Best Brains has shown consistent growth in its franchised units over the past few years. In 2021, there were 114 franchised units, which increased to 121 by 2023. This upward trend reflects the brand's expanding presence in the educational sector and its appeal to franchisees. The company-owned units have remained stable, indicating a focus on supporting franchisee success while maintaining a strong corporate backbone. This growth trajectory may signal a robust market demand for quality educational services, making it a compelling choice for potential investors.

Best Brains Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$250,000 - $500,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

12 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$14,500
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

14%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

1%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$26,350 - $130,800
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$26,350 - $130,800
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$49,030
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$1,164,980
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$1,920,977
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$100,000
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Children’s Franchises
Category icon A more specific division within the broader industry.

i Category:

Education & Tutoring
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Ajay Sunkara
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

135 E. Algonquin Road, Suite B, Arlington Heights, Illinois 60005
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2011
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Best Brains, Inc.

Best Brains Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

123
The number of locations owned by independent franchisees.

Franchised Units i

121
The number of locations owned and run by the franchisor.

Corporate Units i

2
Units 2021 2022 2023
Total Units 119 118 123
Net Change YoY -1 5
Franchised Units 114 116 121
Net Change YoY 2 5
Corporate Units 5 2 2
Net Change YoY -3 0
Investment About

Investment Overview

The Best Brains franchise presents a compelling investment opportunity with a low initial investment range of $26,350 to $130,800. The initial franchise fee is set at $14,500, making it accessible for aspiring entrepreneurs. With a required cash investment of the same range and a net worth requirement between $250,000 and $500,000, potential franchisees can assess their financial readiness to join this growing educational franchise.

Potential About

Revenue Potential

Best Brains units showcase impressive revenue potential, with average annual revenue reported at $1,164,980. The highest annual revenue per unit can reach up to $1,920,977, indicating a lucrative opportunity for franchisees. Even at the lower end, units generate a minimum of $100,000 annually, highlighting the brand's strong market presence and demand for its educational services.

Metrics About

Royalty and Marketing Fees

Franchisees are required to pay a royalty fee of 14% of gross sales, along with a marketing fee of 1%. These fees contribute to the overall brand strength and marketing initiatives that support franchisees in attracting and retaining customers. Understanding these ongoing costs is crucial for financial planning and profitability.

Fees About

Breakeven and Payback Period

Best Brains franchisees can expect a breakeven time of just 12 months, indicating a relatively quick return on investment. The investment payback period is also estimated at 12 months, allowing franchisees to recoup their initial investment within the first year of operation, which is an attractive feature for potential investors.

Breakeven About

Franchise Growth

The Best Brains franchise has shown steady growth, increasing from 114 franchised units in 2021 to 121 units in 2023. This growth reflects the brand's expanding footprint and the increasing demand for its educational services, making it an appealing option for new franchisees looking to tap into a growing market.

Units About

Operational Insights

Franchisees should be aware of average operating expenses, which total approximately $613,626 annually. Key expenses include payroll at $363,214 and rent at $48,010. Understanding these operational costs is essential for effective budgeting and financial management, ensuring that franchisees can maintain profitability while delivering quality educational services.

Frequently Asked Questions

The initial investment for a Best Brains franchise ranges from $26,350 to $130,800, which includes the franchise fee and other startup costs.