What other software fees are Brain Balance franchisees responsible for?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
TIAL 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.
Source: Item 5 — INITIAL FEES (FDD pages 12–13)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees are responsible for several software-related fees in addition to the initial software license fee. For a standard Brain Balance Center, franchisees must pay 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, with the prorated amount due when the software is activated. Additionally, franchisees will pay a prorated amount of $1,000 in software fees for annual third-party software program access.
For franchisees operating a Brain Balance Satellite Center, the fees are similar but prorated based on the standard center's franchise agreement term. Specifically, they pay a prorated amount of the $1,850 annual software maintenance fee and CRM License Fee, as well as a prorated amount of the $1,000 in software fees for annual third-party software program access. These fees cover ongoing maintenance, CRM access, and access to third-party software necessary for the Brain Balance program.
These ongoing software fees are in addition to the initial software license fee, which is $15,000 for a standard center and $10,000 for a satellite center. The fact that these fees are prorated suggests that the franchisee only pays for the portion of the year remaining, aligning costs with the actual period of use. It is important to note that all initial fees, including the software fee, are fully earned and non-refundable once paid to Brain Balance.