Does the Brain Balance FDD provide a comprehensive list of all potential fees?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 6: OTHER FEES]
| Name of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Annual Convention | Franchisee: $750 per person Staff: $700 per person We have the right to increase this fee up to $1,500 per person, on at least 30 days' notice to you. | At the point of registration, prior to Convention date. | Travel, lodging, and food expenses will be in addition to the registration fee, some of which will be discounted or subsidized by the Franchisor. |
| Interest | 2% per month compounded | Upon demand | Payable on all payments that are 15 or more days overdue. |
| Costs and Attorneys' Fees | Will vary under circumstances | As incurred | Payable upon termination of the Franchise Agreement, in an action to collect unpaid amounts owed to us and if we need to enforce the Franchise Agreement by injunctive relief. |
| Relocation Fee | Then-current fee Presently, $4,000 | As incurred | The Franchisor must approve any relocation of your Center and you must pay the Franchisor its then current relocation fee. As of the date of this Disclosure Document, the relocation fee is $4,000. |
| Indemnification | Will vary under circumstances | As incurred | You must reimburse us if we are held liable for claims arising from your operations and under certain circumstances set forth in the Application License Agreement. |
| Insufficient funds | $75 charge per incident We have the right to increase this fee in the future, but will not increase it to greater than the fee charged by our bank, plus 15%. | As incurred | Payable to Franchisor if an ACH transaction cannot be completed for any reason. |
| Renewal fee | $10,000 | Upon approval of renewal by Franchisor each time you renew. | Payable to Franchisor on date of renewal via ACH debit. |
[Item 6: OTHER FEES]
| Name of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Soft Opening date change expenses | Will vary, may include but not limited to (Note 11) | Payable as soon as Franchisee's change to Soft Opening date results in non refundable expenses. | Payable to Franchisor when Franchisor incurs non refundable expenses due to Franchisee changing Soft Opening date. (Note 11) |
| Transfer fee | $10,000 (Note 8) | Upon completion of transfer. | Payable to the Franchisor when franchise is transferred; there is no charge if transfer is to your spouse or adult child. |
[Item 6: OTHER FEES]
- Note 1: Except as otherwise noted, all fees are imposed uniformly by and are payable to BBF via ACH debit and are non-refundable unless otherwise specified.
- Note 2: We expect that the merchant services agreement transaction fee willaverage 2.25% to 3.5% depending on the type of payment. . If you do not participate in this program and you pay credit card servicing transaction fees that are higher than the set percentage, we will deduct only the set percentage for credit card transactions from your GR; conversely, if you are able to negotiate a lower credit card servicing transaction fee than what we have negotiated for all Brain Balance® Centers, you will be permitted to retain the differential for the GR on which the Royalty is based.
- Note 3 You will determine what channel mix in your area works best for your Center and Market. Franchisor may provide resources to determine the best market mix for your center location(s). Franchisor will provide a list of approved marketing agencies you may choose from to engage in advertising. If you do not work with an approved marketing agency, you may be subject to a penalty.
- Note 5: Alternatively, you may send a new Center Director or Program Director to the next regularly scheduled Initial Training session at a cost of $500.
- Notes 6: We provide you with a comprehensive and proprietary software CRM platform which manages leads and customer information. We collect the Third-Party Platform License fee and pay it to the third party which hosts our CRM software platform (currently Salesforce as of the date of this Disclosure Document). This fee also allows us to maintain and periodically revise this software.
could increase. We pass through the cost of these licenses to you.
Note 8: The transfer fee compensates us for the cost of training the Transferee and other
related costs.
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, Item 6 details various fees franchisees may incur. These fees cover a range of operational aspects, including annual conventions, interest on overdue payments, and costs associated with legal actions. The document specifies amounts for certain fees, such as $750 per person for franchisees attending the annual convention and a $75 charge for insufficient funds. However, it also notes that some fees, like those for indemnification and costs and attorneys' fees, will vary depending on the circumstances.
Several fees are subject to change or are dependent on specific actions taken by the franchisee. For instance, the annual convention fee can increase to $1,500 per person with 30 days' notice. The relocation fee is currently $4,000 but is subject to change. Additionally, expenses related to changes in the soft opening date can vary and are payable if the franchisor incurs non-refundable expenses as a result. Franchisees may also be subject to a penalty if they do not work with an approved marketing agency.
The document also mentions fees related to technology and software. Brain Balance provides a CRM platform, and franchisees pay a Third-Party Platform License fee. Furthermore, franchisees are responsible for software licenses related to programming, with the potential for these costs to increase if Brain Balance adopts new technology platforms. Other fees include a renewal fee of $10,000 and a transfer fee of $10,000, which covers the cost of training the transferee.
Overall, while the Brain Balance FDD provides a detailed list of potential fees, some amounts are subject to change or are variable based on specific circumstances or actions taken by the franchisee. It is important for prospective franchisees to carefully review Item 6 and consider all potential costs, including those that may fluctuate or are dependent on their operational decisions. Additionally, prospective franchisees should discuss with Brain Balance the criteria for approved marketing agencies and the potential penalties for non-compliance.