What is the CRM fee that Brain Balance franchisees must pay?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
You must license the Software/Application required for your Center by executing the Application License Agreement attached as Exhibit 1 to Exhibit A (Franchise Agreement) and as Exhibit 1 to Exhibit B (Satellite Franchise Agreement) when you execute your Franchise Agreement. The Application performs administrative functions for your Center, including collection of data relating to your customers and transmission of the data to our research facility affiliate.
The Application License Agreement requires payment to us of an initial license fee and annual maintenance fees and its term is for the term of the Franchise Agreement. The Application License Agreement entitles you to multiple users at your Center. Presently, the Software and Applications are being developed exclusively for BBF, but if we change the operating system and contract with a third-party software vendor, you may be required to pay the software vendor directly for multiple users. We will provide support and maintenance of the proprietary Software/Application only, and you will be responsible for maintenance of your own hardware and communication software. (See Items 5 and 6 for the cost of the annual Software Maintenance fees.) We will also provide necessary upgrades to the Software/Applications on an ongoing basis, and, if any upgrade is provided to you, you must implement it. The upgrades will
be provided at no additional cost to you (Application License Agreement §1(a) A). You must permit the Franchisor access to the Software/Application and its data and must perform the actions required to permit the Franchisor to communicate with the Software/Application and to access and record it and its data, including, for example, the purchase, installation, and maintenance of appropriate communication hardware and software (Franchise Agreement §15; Application License Agreement §2(a)).
To ensure secure and consistent communication, all franchisees are required to use Brain Balance's email system. Each Center will be assigned a primary email address along with two (2) additional accounts, one of which will be designated for the Center owner to receive sensitive communications.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEM, AND TRAINING (FDD pages 36–47)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees are required to license software/applications for their center by executing the Application License Agreement. This agreement mandates the payment of an initial license fee and annual maintenance fees. The Application performs administrative functions, including collecting customer data and transmitting it to Brain Balance's research facility affiliate. The term of the Application License Agreement aligns with the term of the Franchise Agreement and entitles the franchisee to multiple users at their center.
Currently, the software and applications are being developed exclusively for Brain Balance. However, if the operating system changes and Brain Balance contracts with a third-party software vendor, franchisees may be required to pay the software vendor directly for multiple users. Brain Balance will provide support and maintenance for the proprietary software/application, while franchisees are responsible for maintaining their own hardware and communication software. Necessary upgrades to the software/applications will be provided at no additional cost to the franchisee.
Franchisees must also allow Brain Balance access to the Software/Application and its data and perform the actions required to permit Brain Balance to communicate with the Software/Application and to access and record it and its data, including, for example, the purchase, installation, and maintenance of appropriate communication hardware and software. To ensure secure and consistent communication, all franchisees are required to use Brain Balance's email system. Each Center will be assigned a primary email address along with two (2) additional accounts, one of which will be designated for the Center owner to receive sensitive communications. The specific amount of the initial license fee and annual maintenance fees are discussed in Items 5 and 6.