Who is responsible for the expense of upgrades to the computer system for my Brain Balance franchise?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
on. There are no contractual limitations on our right to access the information and data. To ensure full operational efficiency and optimum communication capability among computer systems installed by you, us, and other franchisees, you must, at your own expense, keep the computer system in good maintenance and repair, and promptly install such upgrades, additions, changes, modifications, substitutions, and/or replacements to the computer hardware, software, networking/connectivity devices and configurations, telephone and power lines, and other computer-related facilities as we may direct. There is no contractual limitation on the frequency and cost of these obligations (Franchise Agreement Section 18). We cannot estimate the cost of maintaining, updating, or upgrading your computer system or its components because it will depend on your repair history, local costs of computer maintenance services in your area, and technological advances, which we cannot predict at this time.
You may obtain your office computer hardware from any reputable supplier. You are not required to secure a computer maintenance contract, but you must ensure that all programs and applications running on your computer are legally licensed.
We retain the right to data ownership for everything related to the Brain Balance systems, programs, and operations.
Application License Agreement
You must license the Software/Application required for your Center by executing the Application License Agreement attached as Exhibit 1 to Exhibit A (Franchise Agreement) and as Exhibit 1 to Exhibit B (Satellite Franchise Agreement) when you execute your Franchise Agreement. The Application performs administrative functions for your Center, including collection of data relating to your customers and transmission of the data to our research facility affiliate.
The Application License Agreement requires payment to us of an initial license fee and annual maintenance fees and its term is for the term of the Franchise Agreement. The Application License Agreement entitles you to multiple users at your Center. Presently, the Software and Applications are being developed exclusively for BBF, but if we change the operating system and contract with a third-party software vendor, you may be required to pay the software vendor directly for multiple users. We will provide support and maintenance of the proprietary Software/Application only, and you will be responsible for maintenance of your own hardware and communication software.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEM, AND TRAINING (FDD pages 36–47)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, franchisees are generally responsible for the costs of maintaining and upgrading their computer systems. Specifically, the FDD states that franchisees must keep their computer systems in good repair and promptly install any upgrades, additions, changes, modifications, substitutions, and/or replacements to the computer hardware, software, networking/connectivity devices and configurations, telephone and power lines, and other computer-related facilities as directed by Brain Balance, all at the franchisee's own expense. There is no contractual limitation on the frequency and cost of these obligations. However, Brain Balance will provide necessary upgrades to the Software/Applications on an ongoing basis, and, if any upgrade is provided to you, you must implement it. The upgrades will be provided at no additional cost to you.
This means that as a Brain Balance franchisee, you should budget for ongoing technology expenses. These costs can include not only the initial purchase of computer hardware and software, estimated between $24,000 to $27,000 for a Standard Center and $15,000 to $20,000 for a Satellite Center, but also the continuous maintenance, repairs, and upgrades necessary to keep your systems compliant with Brain Balance's requirements. These requirements include having access to the Internet with a minimum download speed of 50 MB per second and up-to-date virus protection software on all PC or Mac computers. Any associated costs with connectivity, router, wireless access point, firewall, anti-virus software, and hardware are your responsibility.
Brain Balance does not provide any guarantees regarding the potential costs of these upgrades, noting that the actual expenses will depend on factors such as repair history, local service costs, and technological advancements. While Brain Balance retains the right to access and use data from your computer system, the costs associated with their data retrieval are borne by Brain Balance, not the franchisee. Franchisees are required to license the Software/Application required for their Center by executing the Application License Agreement, which includes payment to Brain Balance of an initial license fee and annual maintenance fees.
It is important to note that while Brain Balance will provide necessary upgrades to the Software/Applications at no additional cost, franchisees are responsible for ensuring they have the appropriate communication hardware and software to permit Brain Balance access to the Software/Application and its data. This division of responsibility means franchisees need to stay informed about technology requirements and budget accordingly to avoid any disruptions to their Brain Balance center's operations.