How are Brain Balance royalty payments made?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
6.03. Late Payment
- (a) If FRANCHISEE shall fail to pay to COMPANY when due any Royalty, Advertising Fund contribution, or any other payment required to be made pursuant to this Agreement, interest shall accrue on the unpaid amount commencing fifteen (15) days after the due date, at a rate of two percent (2%) per month compounded or the highest rate permitted under applicable law, whichever is less.
- (b) If FRANCHISEE shall fail to pay to COMPANY when due any Royalty, Advertising Fund contribution, or any other payment due hereunder, or fails to file any
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the method for making royalty payments is not explicitly detailed in the provided excerpts. The excerpts do mention that if a franchisee fails to pay royalties when due, interest accrues starting 15 days after the due date at a rate of 2% per month, compounded, or the highest rate permitted by law, whichever is less. Additionally, failure to pay royalties or file required reports for 30 days after written demand from Brain Balance constitutes a breach of the agreement.
While the FDD excerpts outline the consequences of late payments, they do not specify the exact procedures for how Brain Balance franchisees are supposed to submit their regular royalty payments. This leaves a gap in understanding the day-to-day mechanics of fulfilling this financial obligation.
A prospective Brain Balance franchisee should ask the franchisor for clarification on the accepted methods of payment (e.g., electronic transfer, check), the specific due dates for royalty payments, and the process for reporting gross revenue, which is the basis for calculating royalties. Understanding these details is crucial for maintaining a good financial standing with Brain Balance and avoiding late fees or potential breaches of the franchise agreement.