Who is responsible for the cost of providing the Operating Environment required to access the Brain Balance software?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
2. Application Services.
- (a) Licensee acknowledges that the Software shall be provided by Licensor, either directly, or indirectly through an independent contractor designated by Licensor. Licensor, or its subcontractor, as the case may be, shall provide the appropriate rack space and connectivity for such services reasonably related thereto (collectively, the "Application Services"). The Application Services shall be provided at Licensor's cost and shall remain the property of Licensor or its subcontractor as the case may be. The Software shall be made available to Licensee using a link (the "Access Link") from each of Licensee's Users' (as defined below) computers to access and use the Software on the Access Link using a commercial host. Licensee acknowledges that while the Access Link to the database shall be dedicated for the Licensee's sole usage, the server(s) hosting software applications which provide authentication, security of access and access to the Users may be shared with other users. Licensee further acknowledges and agrees that successful access and use of the Software by Licensee depends upon Licensee's implementation of appropriate hardware and communication software as specified on Exhibit C hereto or as Licensor may reasonably recommend from time to time in its Operations Manual or otherwise (collectively, the "Operating Environment"). Licensee shall be responsible for providing the Operating Environment at its own expense.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the franchisee is responsible for the costs associated with providing the Operating Environment necessary for accessing and utilizing the Brain Balance software. The franchisor, will provide the software, either directly or through a designated independent contractor, and will cover the costs for the appropriate rack space and connectivity for the Application Services.
The "Operating Environment" refers to the hardware and communication software needed to successfully access and use the Brain Balance software. The franchisee must implement the hardware and communication software as specified in Exhibit C of the Franchise Agreement or as reasonably recommended by Brain Balance in its Operations Manual or otherwise.
This means a prospective Brain Balance franchisee needs to factor in the costs of the required hardware and software when budgeting for their franchise. These costs are separate from the franchise fee and other initial investment expenses. It is important to review Exhibit C and the Operations Manual carefully to understand the specific requirements and associated costs for the Operating Environment.