What is the maximum amount Brain Balance can charge for an insufficient funds fee?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Insufficient funds | $75 charge per incident We have the right to increase this fee in the future, but will not increase it to greater than the fee charged by our bank, plus 15%. | As incurred | Payable to Franchisor if an ACH transaction cannot be completed for any reason. |
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the initial insufficient funds fee is $75 per incident. However, Brain Balance retains the right to increase this fee in the future. The maximum amount Brain Balance can charge is capped at the fee charged by their bank, plus an additional 15%.
This means that if a franchisee's ACH transaction is not completed for any reason, they will incur this fee. The fee is payable to Brain Balance. The exact amount beyond the initial $75 will depend on Brain Balance's bank's insufficient fund fee at the time of the incident, plus the additional 15%.
As a prospective franchisee, it would be prudent to inquire about the current bank fee charged to Brain Balance for insufficient funds to better understand the potential maximum amount Brain Balance could charge in the future. Understanding this potential maximum helps in forecasting potential expenses and managing finances effectively.