What payments are required to Brain Balance under the Application License Agreement?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
You must license the Software/Application required for your Center by executing the Application License Agreement attached as Exhibit 1 to Exhibit A (Franchise Agreement) and as Exhibit 1 to Exhibit B (Satellite Franchise Agreement) when you execute your Franchise Agreement. The Application performs administrative functions for your Center, including collection of data relating to your customers and transmission of the data to our research facility affiliate.
The Application License Agreement requires payment to us of an initial license fee and annual maintenance fees and its term is for the term of the Franchise Agreement. The Application License Agreement entitles you to multiple users at your Center. Presently, the Software and Applications are being developed exclusively for BBF, but if we change the operating system and contract with a third-party software vendor, you may be required to pay the software vendor directly for multiple users. We will provide support and maintenance of the proprietary Software/Application only, and you will be responsible for maintenance of your own hardware and communication software. (See Items 5 and 6 for the cost of the annual Software Maintenance fees.) We will also provide necessary upgrades to the Software/Applications on an ongoing basis, and, if any upgrade is provided to you, you must implement it. The upgrades will
be provided at no additional cost to you (Application License Agreement §1(a) A). You must permit the Franchisor access to the Software/Application and its data and must perform the actions required to permit the Franchisor to communicate with the Software/Application and to access and record it and its data, including, for example, the purchase, installation, and maintenance of appropriate communication hardware and software (Franchise Agreement §15; Application License Agreement §2(a)).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEM, AND TRAINING (FDD pages 36–47)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees are required to make payments to Brain Balance under the Application License Agreement. These payments include an initial license fee and annual maintenance fees. The Application License Agreement's term length is the same as the Franchise Agreement's term.
The Application License Agreement entitles the franchisee to multiple users at their Brain Balance center. Currently, the software and applications are being developed exclusively for Brain Balance. However, if the operating system changes and Brain Balance contracts with a third-party software vendor, franchisees may be required to pay the software vendor directly for multiple users.
Brain Balance will provide support and maintenance for the proprietary software/application. Franchisees are responsible for the maintenance of their own hardware and communication software. Brain Balance will also provide necessary upgrades to the software/applications on an ongoing basis at no additional cost to the franchisee, and franchisees are required to implement any upgrade provided to them.