What was the range of Tenant Improvement Credits received by Brain Balance franchisees?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
on and disability insurance, if required. (See Item 8.)
Note 7: Our estimate for construction costs is based on you following our recommended build-out guidelines for a leased space of the square footage we recommend (see Note 4, above). If you choose to upgrade to more luxurious building finishes than we recommend, or if you lease and build out a significantly larger space, your cost may exceed our estimate. These estimates are based on build out costs as reported to us by franchisees for centers that opened 2019-2021. During this time franchisees received an average of approximately $61,000 in Tenant Improvement Credits ("TI"), and we have factored that into our costs. Franchisees reported TI ranging from zero to $75,000. Our estimates also removed abnormally low outliers caused by conditions such as a family member being a contractor, or build-outs completed at no cost by the landlord, as these are unusual circumstances we do not expect to be replicated in our estimates. The cost per square foot, during this time had both an average and median of $35/sq. foot (excluding TIs), and the range was as low as $6 and as high as $70. Approximately 32% of all build-outs were less than $20 per square foot. 24% were $20-$40 per square foot, 32% were $40-$60 per square foot, and 12% of f
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 who opened centers between 2019 and 2021 received Tenant Improvement credits ranging from $0 to $75,000. The average Tenant Improvement credit during this period was approximately $61,000, which Brain Balance factored into their cost estimates.
Tenant Improvement (TI) credits are allowances that landlords may provide to tenants to offset the costs of build-out or renovation of a leased space. These credits can significantly reduce the initial investment required to open a Brain Balance center. However, the availability and amount of TI credits can vary widely depending on factors such as the location, the landlord, and the lease terms.
It's important to note that Brain Balance removed abnormally low outliers from their calculations, such as situations where a family member was a contractor or the landlord completed the build-out at no cost. These situations are considered unusual and not representative of what a new franchisee can typically expect. Prospective franchisees should confirm what level of Tenant Improvement Credits they can expect to receive, as this can greatly affect the initial investment for a Brain Balance franchise.