Does the Brain Balance franchise have any fees related to audits?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
se of our website. | |
| 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. |
| 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. .
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the information provided does not specify any fees related to audits for a Brain Balance franchise. The document includes a detailed table of various fees, such as a transfer fee of $10,000, annual convention fees of $750 per person for franchisees and $700 per person for staff, and a relocation fee of $4,000. There are also fees for insufficient funds ($75), renewal ($10,000), and interest (2% per month compounded). However, there is no mention of any audit-related fees.
While the FDD lists numerous potential fees, the absence of audit fees suggests that franchisees may not typically incur such charges. However, it is possible that audit-related costs could be included under more general categories like "Costs and Attorneys' Fees," which the franchisee pays if Brain Balance has to take legal action to collect unpaid amounts or enforce the Franchise Agreement. This fee will vary under the circumstances and is paid as incurred.
A prospective Brain Balance franchisee should clarify with the franchisor whether there are any circumstances under which they might be charged for audits, either routine or triggered by specific events. Understanding the full scope of potential fees is crucial for accurate financial planning and assessing the overall investment required to operate a Brain Balance franchise.