Under what circumstances can Brain Balance increase the Third Party Platform Fees?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Maintenance Fees. Commencing upon execution hereof and until such time as the License granted hereunder is terminated , Licensee shall pay to Licensor the annual maintenance fees (the "Maintenance Fees") and the monthly third party platform hosting fees (the "Third Party Platform Fees") specified in Exhibit B.The Maintenance Fees may be increased by Licensor from time to time following the initial twelve (12) month period in accordance with the terms specified in Exhibit B. No increase in Maintenance Fees shall exceed the CPI (as defined below) increase with respect to the year prior to such increase. "CPI" means the Consumer Price Index issued by the U.S. Department of Labor, Bureau of Labor Statistics, N.Y.–Northeastern N.J. region for the immediately preceding December 31st . The Third Party Platform Fees may be increased on thirty (30) days' prior notice in the event that the third party hosting company increases fees charged to Licensor, and in the amount by which Licensor's costs increase.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the Third Party Platform Fees can be increased if the third-party hosting company increases its fees to Brain Balance. In this case, Brain Balance can increase the fees charged to franchisees.
Brain Balance must provide franchisees with thirty days' prior notice before increasing the Third Party Platform Fees. The increase is limited to the amount by which Brain Balance's costs have increased due to the third-party fee hike.
This means that as a Brain Balance franchisee, you could see these platform fees increase during the term of your agreement if the costs for the services provided by the third-party hosting company go up. It is important to factor in the possibility of these increases when projecting expenses.