For Brain Balance, how is the annual cost of living increase calculated?

According to Brain Balance's 2025 Franchise Disclosure Document, the annual cost of living increase, if any, is determined by the percentage increase in the Consumer Price Index for All Urban Consumers (CPI-U). This index is published annually by the U.S. Bureau of Labor Statistics.

For a prospective Brain Balance franchisee, this means that certain fees or costs associated with the franchise may increase each year based on changes in the CPI-U. The CPI-U is a measure of the average change over time in the prices paid by urban consumers for a basket of consumer goods and services. It is a widely used indicator of inflation.

This cost of living adjustment is a fairly standard practice in franchising and other business agreements to account for inflation and maintain the real value of payments over time. Franchisees should monitor the CPI-U to anticipate potential increases in their costs and factor these increases into their financial planning. It's important to note that the increase is only applied if there is an actual percentage increase in the CPI-U, meaning costs could remain stable if there is no inflation.