What was the net income or loss for the Brain Balance franchise in 2024?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
ance regarding, among other matters, the planned scope and timing of the audits, significant audit findings, and certain internal control-related matters that we identified during the audits.
April 29, 2025
Balance Sheet
December 31, 2024, 2023, and 2022
| 2024 | 2023 | 2022 |
|---|
Statement of Operations
Years Ended December 31, 2024, 2023, and 2022
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenue Royalties Software fees | $ 3,311,061 $ 199,712 | 3,281,981 $ 176,501 | 3,376,582 209,105 |
| Coaching, enrollment kit, and other revenue | 1,333,317 | 1,274,825 | 1,611,326 |
| Advertising fees | 841,894 | 837,464 | 856,495 |
| Franchise fees | 148,720 | 87,046 | 71,477 |
| Total revenue | 5,834,704 | 5,657,817 | 6,124,985 |
| Operating Expenses Franchise-related expenses License and administrative service fees Advertising and marketing expenses | 1,529,276 3,642,517 1,038,376 | 1,177,741 3,417,429 938,952 | 1,704,829 2,984,044 928,473 |
| Total o |
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the net loss for the company in 2024 was $324,837. This figure represents the overall financial performance of BB Franchising, LLC, not the performance of individual franchise locations. It's important to note that the company's operating results could differ significantly if it operated independently of its parent company, Brain Balance Holdings, Inc.
The FDD provides a comparative view of Brain Balance's financial performance over three years, showing a net loss of $324,837 in 2024, a net income of $161,876 in 2023, and a net income of $307,374 in 2022. This indicates a fluctuating financial performance over the three-year period. Prospective franchisees should consider these trends and investigate the reasons behind the shift from net income to net loss in 2024.
Furthermore, the FDD includes a statement that the company is treated as a partnership for federal income tax purposes, meaning that federal income taxes are not directly payable by the company. Instead, the member is taxed individually on their share of the company's earnings. This structure could have implications for how profits and losses are distributed and taxed for the franchisee.
A potential franchisee should consult with a financial advisor to understand the full implications of these financial results and the tax structure. It is also advisable to speak with existing Brain Balance franchisees to gain insights into their individual financial performance and experiences.