What was the ending balance for Brain Balance as of December 31, 2021?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenue Royalties Software fees | $ 3,311,061 $ 199,712 | 3,281,981 $ 176,501 | 3,376,582 209,105 |
| Coaching, enrollment kit, and other revenue | 1,333,317 | 1,274,825 | 1,611,326 |
| Advertising fees | 841,894 | 837,464 | 856,495 |
| Franchise fees | 148,720 | 87,046 | 71,477 |
| Total revenue | 5,834,704 | 5,657,817 | 6,124,985 |
| Operating Expenses Franchise-related expenses License and administrative service fees Advertising and marketing expenses | 1,529,276 3,642,517 1,038,376 | 1,177,741 3,417,429 938,952 | 1,704,829 2,984,044 928,473 |
| Total operating expenses | 6,210,169 | 5,534,122 | 5,617,346 |
| Operating (Loss) Income | (375,465) | 123,695 | 507,639 |
| Other Income (Expense) Other income Interest expense Other expense | 56,616 (5,988) - | 44,000 (5,652) (167) | 41,5 |
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the balance as of December 31, 2021, was $(166,678). This indicates a negative balance, meaning Brain Balance had more liabilities than assets at that time.
For a prospective franchisee, this historical financial data provides insight into the financial health of Brain Balance. While a past negative balance doesn't necessarily predict future performance, it's a point to consider during due diligence. It would be prudent to investigate the reasons behind the negative balance and understand how Brain Balance has addressed it in subsequent years.
Franchisees should review the complete financial statements and consult with a financial advisor to assess the implications of this balance on the stability and future prospects of the Brain Balance franchise system. Understanding the context and any corrective measures taken since then is crucial for making an informed investment decision.