When must a Brain Balance franchisee license the Software/Application for their center?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
You must license the Software/Application required for your Center by executing the Application License Agreement attached as Exhibit 1 to Exhibit A (Franchise Agreement) and as Exhibit 1 to Exhibit B (Satellite Franchise Agreement) when you execute your Franchise Agreement. The Application performs administrative functions for your Center, including collection of data relating to your customers and transmission of the data to our research facility affiliate.
The Application License Agreement requires payment to us of an initial license fee and annual maintenance fees and its term is for the term of the Franchise Agreement. The Application License Agreement entitles you to multiple users at your Center. Presently, the Software and Applications are being developed exclusively for BBF, but if we change the operating system and contract with a third-party software vendor, you may be required to pay the software vendor directly for multiple users. We will provide support and maintenance of the proprietary Software/Application only, and you will be responsible for maintenance of your own hardware and communication software. (See Items 5 and 6 for the cost of the annual Software Maintenance fees.) We will also provide necessary upgrades to the Software/Applications on an ongoing basis, and, if any upgrade is provided to you, you must implement it. The upgrades will
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEM, AND TRAINING (FDD pages 36–47)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, a franchisee must license the required Software/Application for their center when they execute the Franchise Agreement. This is formalized through the Application License Agreement, which is included as Exhibit 1 to Exhibit A (Franchise Agreement) and as Exhibit 1 to Exhibit B (Satellite Franchise Agreement).
The Application License Agreement mandates that the franchisee pay Brain Balance an initial license fee and annual maintenance fees. The term of the Application License Agreement aligns with the term of the Franchise Agreement. This license permits multiple users to access the software at the franchisee's center.
The software performs administrative tasks for the Brain Balance center, including collecting customer data and transmitting it to Brain Balance's research facility affiliate. While the software is currently developed exclusively for Brain Balance, the document notes that franchisees may be required to pay a third-party software vendor directly if Brain Balance changes the operating system and contracts with an outside vendor. Brain Balance will provide support and maintenance for its proprietary software, while franchisees are responsible for maintaining their own hardware and communication software. Franchisees must also implement any upgrades provided by Brain Balance at no additional cost.