What were the total operating expenses for 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 operating expenses for the company in 2022 were $5,617,346. This figure encompasses various costs associated with running the Brain Balance franchise system. These expenses are a critical factor in understanding the overall financial health and profitability of Brain Balance as a franchisor.
Breaking down the operating expenses, in 2022, franchise-related expenses amounted to $1,704,829, license and administrative service fees totaled $2,984,044, and advertising and marketing expenses reached $928,473. These specific categories provide insight into where Brain Balance allocates its resources to support its franchise network. Franchise-related expenses likely include costs associated with franchisee support, training, and compliance. License and administrative service fees probably cover the costs of managing the franchise system and providing essential services to franchisees. Advertising and marketing expenses reflect Brain Balance's investment in promoting the brand and attracting customers to its centers.
Prospective franchisees should carefully consider these operating expenses when evaluating the financial viability of a Brain Balance franchise. While these are the franchisor's expenses, understanding the franchisor's financial stability and spending priorities can indirectly impact franchisees. For example, a strong investment in advertising and marketing could benefit franchisees by increasing brand awareness and driving more customers to their centers. Similarly, efficient management of license and administrative service fees could indicate a well-run franchise system that provides valuable support to its franchisees. Reviewing these figures in comparison to Brain Balance's revenue can provide a clearer picture of the company's financial efficiency and potential profitability for franchisees.
It is important to note that these figures reflect the operating expenses of the franchisor, Brain Balance, and not the operating expenses of an individual franchise location. A prospective franchisee needs to conduct their own due diligence to estimate the operating expenses they will incur in their specific location. This includes considering factors such as rent, labor costs, marketing expenses, and other local costs.