What was the average Tenant Improvement Credit received by Brain Balance franchisees between 2019 and 2021?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
nd disability insurance, if required. (See Item 8.)
- Note 7: Our estimate for construction costs is based on you following our recommended build-out guidelines for a leased space of the square footage we recommend (see
Note 5, above). If you choose to upgrade to more luxurious building finishes than we recommend, or if you lease and build out a significantly larger space, your cost may exceed our estimate. These estimates are based on build out costs as reported to us by franchisees for centers that opened 2019-2021. During this time franchisees received an average of approximately $61,000 in Tenant Improvement Credits ("TI"), and we have factored that into our costs. Franchisees reported TI ranging from zero to $165,000. Our estimates also removed abnormally low outliers caused by conditions such as a family member being a contractor, or build-outs completed at no cost by the landlord, as these are unusual circumstances we do not expect to be replicated in our estimates. The cost per square foot, during this time had both an average and median of $35/sq. foot (excluding TIs), and the range was as low as $6 and as high as $70. Approximately 32% of all build-outs were less than $20 per square foot. 24% were $20-$40 per square foot, 32% were $40-$60 per square foot, and 12% of franchisees chose to spend more than $60 per square foot.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–30)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees who opened centers between 2019 and 2021 received an average of approximately $61,000 in Tenant Improvement Credits (TI). This figure has been factored into Brain Balance's estimated initial investment costs. However, the actual TI amounts varied significantly, ranging from zero to $165,000 during that period.
The Tenant Improvement Credit can substantially offset the costs associated with building out a Brain Balance center. These credits are incentives offered by landlords to help new tenants customize the space to meet their specific business needs. The amount of TI credit a franchisee can obtain depends on factors such as the location, the landlord's willingness to invest in the property, and the negotiated lease terms.
It is important to note that the provided data excludes certain outliers, such as situations where a franchisee had a family member as a contractor or received a rent-free build-out from the landlord. Brain Balance considers these to be unusual circumstances that are unlikely to be replicated. Therefore, prospective franchisees should not rely on these extreme cases when estimating their potential build-out costs and TI credits. Franchisees should carefully consider their location and negotiate with landlords to maximize potential TI credits to offset initial investment expenses.