Where can I find information about other fees associated with the 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, Item 6 details the various other fees franchisees may incur. These fees cover a range of operational aspects and potential circumstances.
For instance, Brain Balance franchisees can expect to pay $750 per person for themselves and $700 per person for staff to attend the annual convention. These fees may increase to $1,500 per person with 30 days' notice. Additionally, franchisees are responsible for travel, lodging, and food expenses related to the convention, although some of these costs may be discounted or subsidized by Brain Balance. Other fees include interest at 2% per month compounded on overdue payments, a $75 charge for insufficient funds, and a $10,000 renewal fee.
Additional fees may arise from specific situations. A relocation fee of $4,000 is required if a franchisee relocates their center, subject to Brain Balance's approval. Franchisees may also face costs and attorneys' fees in the event of a Franchise Agreement termination or legal action to collect unpaid amounts. Furthermore, franchisees are responsible for indemnifying Brain Balance against liabilities arising from their center's operations. There are also soft opening date change expenses that will vary and are payable as soon as the change results in non refundable expenses. A transfer fee of $10,000 is required upon completion of a transfer, unless the transfer is to a spouse or adult child.
Understanding these other fees is crucial for prospective Brain Balance franchisees to accurately assess the overall investment and operational costs associated with the franchise. Franchisees should carefully review Item 6 of the FDD and seek clarification from Brain Balance regarding any unclear or potentially variable fees to ensure they have a comprehensive understanding of their financial obligations.