Who determines the refundability of fees paid to third parties by a Brain Balance franchisee?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 19: None of the fees listed in this table and paid to us are refundable. The refundability of the fees paid to third parties is determined by those third parties, although you should anticipate that most of them will not be refundable, including fees you pay to general contractors, signage providers, utility companies, wages you pay to staff, or fees you pay to professional services providers. In some instances you may be able to obtain a refund for certain things, such as noncustomized furniture or basic supplies that you purchase at a store, but your ability to obtain a refund will depend on the return and refund policies of each individual supplier.
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 refundability of fees paid to third parties is determined by those individual third parties. This means that Brain Balance franchisees need to understand the refund policies of each vendor or service provider they engage with.
Brain Balance franchisees should anticipate that most fees paid to third parties will likely be non-refundable. This includes fees paid to general contractors, signage providers, utility companies, wages paid to staff, and fees paid to most professional service providers. Therefore, franchisees should carefully consider their choices and negotiate terms with these providers upfront.
However, the FDD notes that in some instances, a Brain Balance franchisee may be able to obtain a refund for certain items, such as non-customized furniture or basic supplies purchased at a store. The ability to obtain such refunds will depend on the specific return and refund policies of each individual supplier. It is crucial for franchisees to inquire about these policies before making any purchases to avoid potential financial losses.