What is the relationship between the initial Brain Balance franchise fee in Item 5 and the availability of financing options mentioned in Item 10?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
required to be disclosed in this item.
ITEM 5 INITIAL FEES
Standard Brain Balance® Center
The initial uniform franchise fee for a Brain Balance® Center is $45,000 and is payable in a lump sum at the time you sign the Franchise Agreement. You are also required to license the proprietary software ("Software") from the Franchisor under the Application License Agreement pay the Franchisor $15,000 for the Software license, and pay the Franchisor a prorated amount of the $1,850 annual software maintenance fee and Customer Relationship Management System (CRM) License Fee for the balance of the first year of operation at the time the Software is activated, plus a prorated amount of the $1,000 in software fees you will pay to us for annual third party software program access.
If you are a party to an existing Franchise Agreement with us for a Brain Balance® Center and wish to acquire an additional franchise to open additional standard Center(s), we will reduce the franchise fee based on the following scale:
| Units | Initial Fee | Software Fee | Annual Software Maintenance | |---|---|---|---| | | | | Fees and CRM License Fee |
Brain Balance® Satellite Center
A satellite center concept ("Brain Balance® Satellite Center") is available to Franchisees who currently own at least one Standard franchise location for a minimum of 12 months, are in good standing with no franchise agreement defaults, and have a minimum of $480,000 in revenue per franchise location during the prior 12-month period. A satellite location can only be located within the Franchisee's existing market. Brain Balance® Satellite Centers are facilities that only deliver programming and do not handle lead intake or assessment of prospective enrolling families, post-Program assessments, or administrative functions, so they are smaller and have fewer features. The initial franchise fee for a Brain Balance® Satellite Center is $25,000. You are also required to license the proprietary software ("Software") from the Franchisor under the Application License Agreement and pay the Franchisor $10,000 for the Software license, both of which will be prorated based upon the remaining term of the Standard Center's Franchise Agreement. You would also pay the Franchisor a prorated amount of the $1,850 annual software maintenance fee and CRM License Fee for the balance of the first year of operation at the time the Software is activated, plus a prorated amount of the $1,000 in software fees you will pay to us for annual third party software program access.
We refer to both types of centers collectively as "Centers" in this Disclosure Document.
For all Centers, the initial fee, including the Software Fee, is fully earned and non-refundable when paid.
What This Means (2025 FDD)
Based on the 2025 Brain Balance Franchise Disclosure Document, Item 5 details the initial franchise fees for both standard and satellite Brain Balance centers. The initial franchise fee for a standard Brain Balance Center is $45,000, while a satellite center has an initial fee of $25,000. In addition to the franchise fee, franchisees must also license proprietary software, which costs $15,000 for a standard center and $10,000 for a satellite center. These fees are payable in a lump sum when signing the Franchise Agreement and are considered fully earned and non-refundable upon payment.
Item 5 does not mention any direct relationship between the initial franchise fee and the availability of financing options. The document outlines the fees required to start a Brain Balance franchise but does not specify whether these fees can be financed or how financing might affect the fee structure.
To understand the relationship between the initial franchise fee and financing options, prospective franchisees should refer to Item 10 of the 2025 FDD, which is not included in the provided excerpts. Item 10 typically provides details on any financing options offered by the franchisor or other sources. Franchisees should inquire directly with Brain Balance about potential financing plans, terms, and how these plans might interact with the initial fees outlined in Item 5.