On what is the Brain Balance construction cost estimate based?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
on 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 4, 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 $75,000. 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 f
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 the franchisor's recommended build-out guidelines for a leased space of a recommended square footage. The estimates are based on build-out costs reported by franchisees for centers that opened between 2019 and 2021. During this period, franchisees received an average of approximately $61,000 in Tenant Improvement Credits (TI), which has been factored into the cost estimates. Franchisees reported Tenant Improvement credits ranging from zero to $75,000.
The estimates also exclude abnormally low outliers resulting from situations like a family member being a contractor or build-outs completed at no cost by the landlord, as these are not considered typical. During this time, the cost per square foot had both an average and median of $35, excluding Tenant Improvements. The cost per square foot ranged from $6 to $70.
The FDD specifies the distribution of build-out costs per square foot: Approximately 32% of all build-outs were less than $20 per square foot, 24% were between $20 and $40 per square foot, 32% were 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 the provided estimates.