What is the minimum monthly royalty fee for a Brain Balance franchise?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
thin nine (9) months following the date of the Franchise Agreement, FRANCHISEE will be required to pay to COMPANY the minimum Royalty beginning with the first of the month the following calendar month.
The Royalty shall be an amount equal to eight percent (8%) of FRANCHISEE's Gross Revenue (as defined below) ("GR") in the operation of the Franchised Business, with a minimum of $1,000 due and payable each month. If the thirtieth day falls on a day other than the first day of the month, the minimum royalty amount will be prorated for the number of days the Center was open in that month. Said minimum monthly Royalty of $1,000 shall be increased each January 1st by the same percentage that the Consumer Price Index, issued by the U.S. Department of Labor, Bureau of
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees must pay a royalty fee for the continuing right to use the Brain Balance marks and system. This royalty is 8% of the franchisee's gross revenue, with a minimum payment of $1,000 due each month. This minimum royalty payment is non-refundable.
If a Brain Balance center does not open within nine months of signing the Franchise Agreement, the franchisee is still obligated to pay the minimum royalty fee, starting the month following the nine-month period. The minimum royalty may be prorated if the center is not open for the entire month.
The $1,000 minimum monthly royalty is subject to an annual increase. Each January 1st, the minimum royalty will increase by the same percentage as the increase in the Consumer Price Index (CPI) for the N.Y.–Northeastern N.J. region, as issued by the U.S. Department of Labor, Bureau of Labor Statistics. The increase is calculated based on the CPI from the immediately preceding December 31st compared to the CPI at the time the Franchise Agreement was signed.