What other fees are associated with a Brain Balance franchise?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
newal via ACH debit. |
| 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. |
- 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 4: All Franchisees make the same percentage contribution. We are required to keep Advertising Fund contributions in a separate fund to be used only for purposes related to advertising and the promotion of BBF and its services, as more fully described in Item 11.
- 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.
Note 7: We provide you with licenses to use software for some of the programming available through our Centers. This covers the current technology used in our system. If we change systems or adopt new technology platforms, this amount
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.
Note 9: The annual cost of living increase if any, will be a percentage equal to the
percentage increase, if any, in the consumer price index for All Urban Consumers
(CPI-U), as published by the U.S. Bureau of Labor Statistics annually.
Note 10: Fees will be our actual cost plus 15% per year.
Note 11: Will vary, but may include airfare, transportation, lodging, and other travel
expenses incurred for the Soft Opening.
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees can expect to pay several other fees in addition to the initial franchise fee and ongoing royalties. These fees cover various aspects of the franchise operation, such as training, technology, and compliance. Unless otherwise noted, Brain Balance franchisees must pay all fees via ACH debit, and the fees are generally non-refundable.
Some of the notable fees include an annual convention fee of $750 per person for franchisees and $700 per person for staff, though Brain Balance can increase this fee to $1,500 with 30 days' notice. A relocation fee of $4,000 is required if a franchisee relocates their center. Franchisees also pay a transfer fee of $10,000 upon completion of a transfer of the franchise, unless the transfer is to a spouse or adult child. There is also a renewal fee of $10,000 payable upon approval of renewal by Brain Balance.
Other fees include interest at 2% per month compounded on overdue payments, and a $75 fee for insufficient funds. Franchisees may also incur costs and attorneys' fees, the amount of which will vary, payable upon termination of the Franchise Agreement. Additionally, franchisees may face expenses for changing their soft opening date, the amount of which will vary. Franchisees are also responsible for indemnifying Brain Balance for claims arising from their operations.