What is the purpose of Table No. 2 in the Brain Balance FDD?

According to Brain Balance's 2025 Franchise Disclosure Document, Table No. 2, titled "Transfers of Outlets from Franchisees to New Owners (other than the Franchisor) for Years 2022 to 2024", provides information on franchise resales within the Brain Balance system. This table specifically tracks instances where existing Brain Balance franchisees sold their centers to new owners, excluding any transactions where the franchisor themselves reacquired the outlet. The data spans the three-year period from 2022 to 2024.

For a potential franchisee, this table offers insights into the resale market for Brain Balance franchises. A higher number of resales might indicate a more liquid market, where franchisees can exit their business if desired. Conversely, a low number could suggest that franchisees tend to hold onto their centers, or that there are difficulties in finding buyers. It is important to note that the table excludes transfers back to the franchisor, which could occur for various reasons such as franchisee default or mutual agreement.

The table includes the state, year, and number of transferees. For example, in Florida, there was one transfer in 2023 and one in 2024. In Georgia, there were zero transfers in 2022 and 2023, but two in 2024. Analyzing these trends can help a prospective franchisee understand the stability and transferability of Brain Balance franchises in different geographic areas. It is important to consider the reasons behind these transfers, which may include retirement, relocation, or underperformance. Further investigation into the specific circumstances of these transfers would provide a more complete picture.