What is the Transfer Fee that a Brain Balance franchisee must pay to the company for the transfer of the franchise?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
d within one hundred twenty (120) days after delivery of such offer to COMPANY, or upon substantially the same terms of the sale as specified in such offer, COMPANY shall again have the right of first refusal as herein provided.
COMPANY's written approval of the proposed sale to the named purchaser, if given, shall be conditioned upon the following:
- (a) Only the entire interest of FRANCHISEE under this Agreement may be assigned or transferred, and the entire interest of FRANCHISEE or its affiliated parties in the Standard BB Center must also be assigned and transferred to the same party.
- (b) Unless the assignee or transferee is a franchisee of COMPANY, the assignee or transferee shall undertake and successfully complete COMPANY's Initial Training Program at a location designated by COMPANY at the assignee or transferee's expense.
- (c) The proposed assignee or transferee shall meet the standards then imposed by COMPANY for new franchisees and shall demonstrate to COMPANY's satisfaction the ability to operate the business being transferred. FRANCHISEE shall provide COMPANY with a resume, credit check, and all such other information reasonably required by COMPANY with respect to the proposed assignee or transferee who shall be personally interviewed at a location designated by COMPANY at no cost to COMPANY.
- (d) The assignee or transferee executing both (x) a new 10-year franchise agreement in the form being used at the time by COMPANY for this franchise program, which agreement shall govern the rights and obligations of the parties, provided, however, the purchaser will not be obliged to pay an Initial Franchise Fee, and the Royalty as set forth in this Agreement shall not be altered, and (y) such other documents as COMPANY shall reasonably request in form and substance satisfactory to COMPANY.
- (e) FRANCHISEE shall have paid to COMPANY a Transfer Fee, the amount of $10,000 for the training, supervision, administration, accounting, legal, and/or other expenses of COMPANY in connection with the assignment and transfer. This Transfer Fee shall be collected for the combined transfer of the Standard BB Center and thi
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, a franchisee who transfers their franchise must pay a Transfer Fee of $10,000 to Brain Balance. This fee covers the expenses Brain Balance incurs for training, supervision, administration, accounting, legal matters, and other costs associated with the transfer process. This fee applies to the combined transfer of both the Standard BB Center and the franchised business.
In addition to the Transfer Fee, the franchisee's transferee is responsible for paying a Software Agreement transfer fee of $2,500. The franchisee must also ensure that all outstanding payments due to Brain Balance under the existing franchise agreement are settled before the transfer can be approved.
Brain Balance's approval of the transfer is conditional upon several factors, including that only the entire interest of the franchisee under the agreement may be transferred. The proposed transferee must meet Brain Balance's standards for new franchisees and demonstrate the ability to operate the business. The transferee must also execute a new 10-year franchise agreement and other documents required by Brain Balance. These conditions are typical in franchising to ensure that any new franchisee meets the brand's standards and is capable of running the business effectively.