If a Brain Balance franchisee chooses more luxurious building finishes than recommended, will their construction costs likely exceed the estimate?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
ootage we recommend (see
Note 5, above). If you choose to upgrade to more luxurious building finishes than we recommend, or if you lease and build out a significantly larger space, your cost may exceed our estimate. These estimates are based on build out costs as reported to us by franchisees for centers that opened 2019-2021. During this time franchisees received an average of approximately $61,000 in Tenant Improvement Credits ("TI"), and we have factored that into our costs. Franchisees reported TI ranging from zero to $165,000. Our estimates also removed abnormally low outliers caused by conditions such as a family member being a contractor, or build-outs completed at no cost by the landlord, as these are unusual circumstances we do not expect to be replicated in our estimates. The cost per square foot, during this time had both an average and median of $35/sq. foot (excluding TIs), and the range was as low as $6 and as high as $70. Approximately 32% of all build-outs were less than $20 per square foot. 24% were $20-$40 per square foot, 32% were $40-$60 per square foot, and 12% of fra
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–30)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, if a franchisee opts for more luxurious building finishes than recommended or leases and builds out a significantly larger space, their construction costs may exceed the initial estimate. The estimate is based on build-out costs reported by franchisees for centers opened between 2019 and 2021. During this period, franchisees received an average of approximately $61,000 in Tenant Improvement Credits (TI), which has been factored into the cost estimates.
Franchisees reported receiving Tenant Improvement credits ranging from zero to $165,000. The estimates also exclude abnormally low outliers resulting from situations like a family member being a contractor or build-outs completed at no cost by the landlord, as these are considered unusual circumstances. During this time, the cost per square foot had both an average and median of $35 (excluding TIs), with a range from $6 to $70.
Specifically, 32% of all build-outs were less than $20 per square foot, 24% were between $20 and $40 per square foot, 32% were between $40 and $60 per square foot, and 12% of franchisees spent more than $60 per square foot. Therefore, a Brain Balance franchisee should carefully consider their choice of building finishes and space size, as these decisions can significantly impact their initial investment.