How does Brain Balance monitor the financial condition of its franchisees to reduce credit risk?

According to Brain Balance's 2025 Franchise Disclosure Document, Brain Balance monitors the financial condition of its franchisees to mitigate credit risk. Brain Balance grants credit to franchisees in the normal course of business within the United States. To manage this credit risk, Brain Balance periodically conducts credit analyses and monitors the financial health of its franchisees.

This ongoing evaluation allows Brain Balance to stay informed about the financial stability of its franchisees. However, Brain Balance generally does not require franchisees to provide collateral to secure their accounts receivable. This means Brain Balance relies on its credit analyses and monitoring processes to assess and manage risk rather than holding assets as security.

For a prospective franchisee, this indicates that Brain Balance places importance on the franchisee's ability to meet their financial obligations. While collateral is not typically required, franchisees should be prepared to undergo regular credit evaluations and provide financial information to Brain Balance as part of their ongoing business relationship. This also suggests that maintaining a strong financial position is crucial for franchisees to ensure a positive and sustainable relationship with Brain Balance.