What is the relocation fee for a Brain Balance franchise as of the date of the franchise agreement?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
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6.13. Soft Opening Expenses
In the event FRANCHISEE changes its Soft Opening scheduled date and COMPANY incurs non-refundable expenses, FRANCHISEE will reimburse COMPANY for such expenses.
6.14. Relocation Fee
COMPANY must approve any relocation of FRANCHISEE's Center, and FRANCHISEE must pay COMPANY its then current relocation fee. As of the date of this Agreement, the relocation fee is $4,000.
6.15 Cost Increases
FRA
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees must obtain approval from Brain Balance to relocate their center and must pay the then-current relocation fee. As of the date of the franchise agreement, this relocation fee is $4,000.
It is important to note that while the relocation fee is fixed at $4,000 as of the agreement date, the agreement also states that many costs are based on third-party pricing and current costs. Therefore, Brain Balance may increase prices with prior written notice to the franchisee if vendors increase costs. This implies that the relocation fee could potentially increase during the term of the franchise agreement.
Prospective franchisees should consider the possibility of increased costs and factor this into their financial planning. It would be prudent to inquire about the circumstances under which the relocation fee might change and how frequently such changes typically occur. Understanding these potential cost adjustments is crucial for making an informed investment decision.