When does a Brain Balance licensee pay the annual license fee for the software?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) License Fee for Software. Licensee shall pay to Licensor upon execution hereof and thereafter on each anniversary of the Effective Date the annual license fee specified in Exhibit B.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, a licensee must pay the annual software license fee to Brain Balance upon the execution of the Application License Agreement and then on each anniversary of the effective date. This means that the initial payment is due when the agreement is signed, and subsequent payments are due annually on the same date.
In addition to the annual license fee, Brain Balance franchisees also pay annual maintenance fees and monthly third-party platform hosting fees. The maintenance fees may increase annually based on the Consumer Price Index (CPI), while the third-party platform fees may increase with 30 days' notice if the hosting company raises its rates. To receive ongoing support and maintenance services for the software, franchisees must ensure their maintenance fee payments are current.
The Application License Agreement remains in effect for the duration of the Franchise Agreement, including any extensions or renewals, unless terminated earlier. This agreement grants the franchisee the right to have unlimited users for the Brain Balance center. Franchisees should carefully review Exhibit B of the Franchise Agreement for the specific amounts of the annual license fee, maintenance fees, and third-party platform hosting fees.