Does Brain Balance license the Software under the Application License Agreement?
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
be provided at no additional cost to you (Application License Agreement §1(a) A). You must permit the Franchisor access to the Software/Application and its data and must perform the actions required to permit the Franchisor to communicate with the Software/Application and to access and record it and its data, including, for example, the purchase, installation, and maintenance of appropriate communication hardware and software (Franchise Agreement §15; Application License Agreement §2(a)).
To ensure secure and consistent communication, all franchisees are required to use Brain Balance's email system. Each Center will be assigned a primary email address along with two (2) additional accounts, one of which will be designated for the Center owner to receive sensitive communications.
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, franchisees are required to license the necessary software and applications for their center through an Application License Agreement. This agreement is included as Exhibit 1 to Exhibit A (Franchise Agreement) and as Exhibit 1 to Exhibit B (Satellite Franchise Agreement). This agreement must be executed when the franchisee signs their Franchise Agreement. The software manages administrative tasks, gathers customer data, and sends this data to Brain Balance's research affiliate.
The Application License Agreement mandates that franchisees pay Brain Balance an initial license fee along with annual maintenance fees. The agreement lasts for the same term as the Franchise Agreement and covers multiple users at the franchisee's center. Currently, the software is exclusively developed for Brain Balance. However, if the operating system changes and Brain Balance contracts with a third-party software vendor, franchisees may be required to pay the software vendor directly for multiple users. Brain Balance commits to providing support and maintenance for its proprietary software and applications, while franchisees are responsible for maintaining their own hardware and communication software.
Brain Balance will provide necessary software upgrades at no additional cost, and franchisees are required to implement these upgrades. Franchisees must also allow Brain Balance access to the software, its data, and must facilitate communication with the software, including purchasing, installing, and maintaining appropriate communication hardware and software. All franchisees are required to use Brain Balance's email system to ensure secure and consistent communication. Each center receives a primary email address and two additional accounts, one of which is for the center owner to receive sensitive communications.