What was the total cost of Brain Balance's property and equipment in 2024?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
| Property and equipment are summarized as follows: | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Office equipment | $96,097 $ | 96,097 $ | 96,097 | |
| Computer equipment and software | 4,570 | 4,570 | 4,570 | |
| Total cost | 100,667 | 100,667 | 100,667 | |
| Accumulated depreciation | 100,667 | 100,667 | 97,352 | |
| Net property and equipment | $ | - $ | - $ | 3,315 |
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the total cost of property and equipment as of 2024 was $100,667. This figure includes office equipment valued at $96,097 and computer equipment and software valued at $4,570. The accumulated depreciation on these assets also totaled $100,667, resulting in a net property and equipment value of $0 for that year.
Prospective franchisees should note that while the initial cost of property and equipment is significant, depreciation can substantially reduce the net book value of these assets over time. The FDD indicates that Brain Balance uses the straight-line method for depreciation, spreading the cost evenly over the asset's useful life, which ranges from three to five years. Understanding the depreciation schedule is crucial for financial planning and tax purposes.
It's also important to consider that these figures reflect the franchisor's property and equipment, not necessarily the investment required for a franchisee to establish their own Brain Balance center. Franchisees should conduct their own due diligence to determine the specific equipment and software necessary for their location and the associated costs, as these can vary based on factors such as location size and specific needs. Consulting with existing franchisees and financial advisors can provide valuable insights into these costs and depreciation implications.