What ongoing expenses might require capital to support for a Brain Balance franchise?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
require you to use a professional bookkeeping service.
- Note 16: Capital will be needed to support on-going expenses, such as payroll, office rental expenses, cleaning service and supplies, repairs and maintenance, postage, credit card fees, advertising – beyond the minimum $5,000 local advertising minimum, supplies, phones, utilities, and miscellaneous expenses, to the extent your collected revenue does not cover these costs. Amounts will vary depending on the salaries, provisions of various leases, and utilities' policies. New businesses often generate a negative cash flow. The amount should be sufficient to cover your
expenses during the first three (3) months of the operation of your Franchised Business.
Note 17: These costs will vary significantly depending on the distance traveled and the type
of accommodations selected.
Note 18: Prior to opening the Franchised Business, you will need to advertise for available
staff positions as well as the opening of your franchise Center within your
community.
Note 19: None of the fees listed in this table and paid to us are refundable.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–30)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees should anticipate the need for capital to cover ongoing expenses, especially if collected revenues do not meet costs. These expenses include payroll, which would cover the Center Director and Program Director if the franchisee does not fulfill these roles themselves. Other operating costs include office rental, cleaning services and supplies, repairs and maintenance, postage, and credit card fees.
Franchisees will also need capital for general supplies, phone and utility costs, and advertising beyond the minimum $5,000 local advertising requirement. The FDD notes that amounts for these expenses will vary depending on salaries, lease provisions, and utility policies. New businesses often experience negative cash flow, so having sufficient capital to cover these expenses for the first three months of operation is crucial.
Furthermore, franchisees are required to use accounting software like QuickBooks, which can be purchased or licensed monthly. They must also engage a professional bookkeeper approved by Brain Balance for at least the first six months, and Brain Balance may require continued use of a professional bookkeeping service at their discretion. Franchisees should factor in these technology and professional service costs when planning their ongoing capital needs.