What was the total amount of franchise fees collected by Brain Balance in 2022?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
ance regarding, among other matters, the planned scope and timing of the audits, significant audit findings, and certain internal control-related matters that we identified during the audits.
April 29, 2025
Balance Sheet
December 31, 2024, 2023, and 2022
| 2024 | 2023 | 2022 |
|---|
Statement of Operations
Years Ended December 31, 2024, 2023, and 2022
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenue Royalties Software fees | $ 3,311,061 $ 199,712 | 3,281,981 $ 176,501 | 3,376,582 209,105 |
| Coaching, enrollment kit, and other revenue | 1,333,317 | 1,274,825 | 1,611,326 |
| Advertising fees | 841,894 | 837,464 | 856,495 |
| Franchise fees | 148,720 | 87,046 | 71,477 |
| Total revenue | 5,834,704 | 5,657,817 | 6,124,985 |
| Operating Expenses Franchise-related expenses License and administrative service fees Advertising and marketing expenses | 1,529,276 3,642,517 1,038,376 | 1,177,741 3,417,429 938,952 | 1,704,829 2,984,044 928,473 |
| Total o |
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the total franchise fees collected in 2022 amounted to $71,477. This figure represents the revenue Brain Balance recognized from initial franchise fees, renewal fees, and transfer fees during that year. These fees are typically collected when a new franchise agreement is executed, a franchise agreement is renewed, or a franchise is transferred to a new owner.
It's important to note that Brain Balance recognizes revenue from franchise fees over the term of the franchise agreement, which is typically 10 years. This means that the $71,477 represents the portion of initial, renewal, and transfer fees allocated to 2022 based on the percentage of the franchise term that elapsed during that year. The actual cash collected from franchisees for these fees in 2022 may have been different due to the timing of payments and the recognition of revenue over time.
For a prospective Brain Balance franchisee, this information provides insight into the revenue streams of the franchisor and the importance of franchise fees as a component of Brain Balance's overall financial performance. Understanding the amount of franchise fees collected can help potential franchisees assess the financial stability and growth potential of the Brain Balance franchise system. Additionally, it highlights the ongoing nature of the franchise relationship, with revenue recognized over the life of the agreement rather than solely at the outset.