What build-out guidelines should be followed to meet the Brain Balance construction cost estimate?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Note 5: At least 1,500 square feet of usable square footage will be needed to operate your Franchised Business (see Item 11). You do not need a space larger than 2,500 square feet, and our estimate is based on a space between 1,500 and 2,500 square feet. The cost per square foot of leasing commercial space varies considerably depending upon the Center location and market conditions. The cost of leasing commercial space is estimated to be between $10 and $50 per square foot but may be higher in major metropolitan areas. Non-commercial space would need to be approved through us.
- Note 6: The figures in the chart are based upon the estimated average premiums calculated by the insurance brokers designated by us who have negotiated rates with carriers nationally as first years' premium for Commercial general liability and Professional Liability coverage, including, but not limited to, education services ($1,000,000 per occurrence and $3,000,000 in the aggregate), commercial automobile liability insurance covering vehicles that are owned, nonowned, or hired by the Franchised Business, providing bodily injury and property damage, Employment Practices Liability Insurance ("EPLI"), and workers compensation and 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.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–30)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the construction cost estimate is based on following the franchisor's recommended build-out guidelines for a leased space of the recommended square footage. Brain Balance requires at least 1,500 square feet of usable space, but no more than 2,500 square feet. The estimated cost to lease commercial space is between $10 and $50 per square foot, though it could be higher in major metropolitan areas. Non-commercial spaces must be approved by Brain Balance.
The build-out cost estimates provided in the FDD are based on costs reported by franchisees who opened centers between 2019 and 2021. During this time, franchisees received an average of approximately $61,000 in Tenant Improvement Credits, which Brain Balance factored into their cost estimates. The Tenant Improvement Credits ranged from zero to $75,000. The estimates also exclude abnormally low outliers, such as instances where a family member was a contractor or the landlord completed the build-out at no cost.
During that period, the average and median cost per square foot was $35 (excluding Tenant Improvements), with a range of $6 to $70. Approximately 32% of build-outs cost less than $20 per square foot, 24% cost between $20 and $40 per square foot, 32% cost between $40 and $60 per square foot, and 12% of franchisees spent more than $60 per square foot. If a franchisee chooses to upgrade to more luxurious building finishes or leases and builds out a significantly larger space than recommended, the construction costs may exceed Brain Balance's estimate.