How does Brain Balance allocate consideration to training, center opening, and grand opening services?

According to Brain Balance's 2025 Franchise Disclosure Document, the company allocates consideration to training, center opening, and grand opening services based on the observable stand-alone selling price of third-party service providers offering similar training. This means Brain Balance determines the value of these services by looking at what other independent companies charge for comparable training programs. The remaining consideration, after accounting for these services, is then allocated to the franchise right itself.

This approach to allocating consideration is important for franchisees because it directly impacts how Brain Balance recognizes revenue and manages its financial obligations. By using third-party pricing as a benchmark, Brain Balance aims to provide a fair and transparent valuation of the training and support services it offers. This can also affect the franchisee's initial investment and ongoing fees, as the allocation of consideration influences how these costs are accounted for over the term of the franchise agreement.

For a prospective franchisee, understanding this allocation method is crucial for assessing the overall value proposition of the Brain Balance franchise. It's important to evaluate whether the stand-alone selling price of third-party training accurately reflects the quality and comprehensiveness of the training and support provided by Brain Balance. Additionally, franchisees should consider how the allocation of consideration to the franchise right impacts their long-term financial returns and the overall profitability of their center.