What was the credit loss expense for Brain Balance in 2024?

According to Brain Balance's 2025 Franchise Disclosure Document, the credit loss expense for the year 2024 was $59,741. This expense reflects the amount Brain Balance has accounted for as potential losses from franchisees' accounts receivable that may not be collectible. Understanding this figure is important for prospective franchisees as it provides insight into the financial management and potential risks associated with franchisee payments within the Brain Balance system. The credit loss expense can fluctuate yearly, as seen in the 2023 figure of $5,560 and no expense in 2022, indicating varying degrees of risk in different periods.

This credit loss expense is part of the broader cash flow statement, which includes various operating activities such as net income/loss, depreciation, and changes in assets and liabilities. For Brain Balance, these operating activities resulted in a net cash used in operating activities of $(460,611) in 2024, compared to $18,355 provided in 2023. The credit loss expense is one of the adjustments made to reconcile net loss/income to net cash from operating activities.

Prospective franchisees should consider the credit loss expense in conjunction with other financial metrics to assess the overall financial health and stability of Brain Balance. It is also advisable to inquire about the factors contributing to the credit loss expense and the measures Brain Balance takes to mitigate these losses. Understanding the historical trends and the reasons behind fluctuations in credit loss expense can provide valuable insights into the potential financial risks and rewards of investing in a Brain Balance franchise.