What was the total revenue from Brain Balance franchise fees in 2023?
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 revenue from franchise fees for the year 2023 was $87,046. This figure represents the income Brain Balance recognized from initial franchise fees paid by new franchisees. These fees are typically paid when a new franchise agreement is executed.
It is 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 $87,046 represents the portion of initial franchise fees recognized as revenue in 2023, not necessarily the total amount of franchise fees collected during that year. The remaining portion of the fees is recognized over the remaining term of the franchise agreements.
In addition to franchise fees, Brain Balance also generates revenue from other sources, including royalties, software fees, advertising fees, enrollment kits, and coaching. These revenue streams are recognized differently based on when the services are provided or when the underlying sales occur. For example, royalties and advertising fees are typically paid monthly based on a percentage of the franchisee's gross sales.