What is the annual license fee for the Brain Balance software, and where can I find the specific amount?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
med by COMPANY on behalf of FRANCHISEE hereunder, until such time as FRANCHISEE has made payment of all amounts due to COMPANY and has filed all reports with COMPANY required to be filed by FRANCHISEE.
6.04. Application License Fees
- (a) FRANCHISEE shall enter into an Application License Agreement annexed hereto as Exhibit 1 and pay an initial license fee in the amount of $10,000 and annual maintenance fees as specified in the Application License Agreement and the Operations Manual. The annual maintenance fees are subject to an annual CPI adjustment. Unless terminated earlier
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees must pay an initial license fee of $10,000 for the software, along with annual maintenance fees, as detailed in the Application License Agreement and the Operations Manual. These annual maintenance fees are subject to an annual adjustment based on the Consumer Price Index (CPI). The Application License Agreement grants the franchisee unlimited users for the center and lasts for the term of the Franchise Agreement, unless terminated earlier.
In addition to the annual maintenance fees, franchisees are also required to pay monthly third-party platform hosting fees, which may increase if the third-party hosting company raises its fees. Any increase in the maintenance fees will not exceed the CPI increase from the prior year. The specific amounts for the annual license fee and maintenance fees are found in Exhibit B of the Franchise Agreement, while the terms and conditions of software support and maintenance are outlined in Exhibit D.
Prospective Brain Balance franchisees should carefully review Exhibit B and Exhibit D to understand the exact costs and terms associated with the software license and maintenance. Understanding these costs is crucial for accurate financial planning and assessing the overall profitability of the franchise. Franchisees should also inquire about any potential future increases in these fees and how they are calculated to avoid unexpected expenses.