How is the Software license fee for a Brain Balance Satellite Center prorated?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
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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. You would also pay the Franchisor a prorated amount of the $1,850 annual software maintenance fee and 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
Source: Item 5 — INITIAL FEES (FDD pages 12–13)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the $10,000 software license fee for a Brain Balance Satellite Center is prorated based on the remaining term of the franchisee's existing Standard Center's Franchise Agreement. In addition to the software license fee, the franchisee will also pay a prorated amount of the $1,850 annual software maintenance fee and CRM License Fee for the balance of the first year of operation at the time the Software is activated. Franchisees also pay a prorated amount of the $1,000 in software fees for annual third-party software program access.
This proration benefits existing Brain Balance franchisees who are expanding with a Satellite Center, as they don't have to pay the full software license and maintenance fees again if their original franchise agreement is still in effect. This reduces the initial investment required for the Satellite Center.
To be eligible for a Brain Balance Satellite Center, franchisees must already own at least one Standard franchise location for a minimum of 12 months, be 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. Satellite Centers are smaller facilities that only deliver programming and do not handle lead intake, assessment of prospective enrolling families, post-Program assessments, or administrative functions.