According to Brain Balance's 2025 Franchise Disclosure Document, the depreciation/amortization plus for the year-to-date (YTD) is $10 as of February 2025. This figure is part of the cash flow statement, which outlines the sources and uses of cash within the Brain Balance Achievement Centers. Depreciation and amortization are non-cash expenses that are added back to net income to arrive at cash flow from operating activities.

For a prospective Brain Balance franchisee, understanding depreciation and amortization is crucial for assessing the true profitability and cash-generating potential of the business. Depreciation represents the reduction in value of tangible assets (like equipment) over time, while amortization is the equivalent for intangible assets (like software). Adding these non-cash expenses back provides a clearer picture of the cash available to the franchisee.

It's important to note that while depreciation and amortization can provide tax benefits, they do not represent actual cash inflows. Therefore, franchisees should focus on managing their cash flow effectively to cover operating expenses, debt service, and capital expenditures. Reviewing the complete cash flow statement, including changes in operating assets and liabilities, provides a comprehensive view of the financial health of a Brain Balance center.