Is a Brain Balance franchisee required to purchase and provide program kits to enrolled students?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
You will be required to purchase and provide program kits to your enrolled students. These are distributed by our designated vendor which produces and distributes them on our behalf.
The vendor that provides the enrollment kits pays us between 25% - 52% of the revenue, depending on the type of kit and its contents.
Based upon our most recent annual audited financial statement, the Franchisor's total revenues for 2024 were $5,834,704. Our total revenue from all required purchases in 2024 was approximately $1,681,749 or 28.8% of revenue.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 30–34)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees are required to purchase and provide program kits to their enrolled students. These kits are sourced from a designated vendor that Brain Balance uses for production and distribution.
This requirement means that a Brain Balance franchisee cannot source these kits from another supplier without approval. Item 8 outlines the process for requesting approval of alternate suppliers, but Brain Balance generally does not approve alternate vendors. To gain approval, a franchisee must provide a description of the item, identify the alternate supplier, and potentially provide a sample for evaluation, all at the franchisee's cost. Brain Balance will then evaluate the supplier based on criteria such as their ability to meet Brain Balance's standards, quality control, financial condition, and capacity to meet demand.
Brain Balance also benefits financially from these required purchases. The vendor that provides the enrollment kits pays Brain Balance a percentage of the revenue, ranging from 25% to 52% depending on the type of kit and its contents. The FDD states that expenditures from all required purchases will be approximately 10%-15% of the franchisee's total costs in establishing and operating the franchised business. This revenue stream from required purchases accounted for approximately 28.8% ($1,681,749) of Brain Balance's total revenues ($5,834,704) in 2024.
Prospective franchisees should consider the implications of these required purchases on their operating costs and profit margins. While using a designated vendor ensures consistency and quality control, it also limits the franchisee's ability to negotiate prices or source potentially cheaper alternatives without going through the approval process. Franchisees should inquire about the specific costs of these program kits and the potential for price fluctuations to accurately assess their financial obligations.