Under what conditions is the transfer fee waived for a Brain Balance franchise?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
newal via ACH debit. |
| Name of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Soft Opening date change expenses | Will vary, may include but not limited to (Note 11) | Payable as soon as Franchisee's change to Soft Opening date results in non refundable expenses. | Payable to Franchisor when Franchisor incurs non refundable expenses due to Franchisee changing Soft Opening date. (Note 11) |
| Transfer fee | $10,000 (Note 8) | Upon completion of transfer. | Payable to the Franchisor when franchise is transferred; there is no ch |
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, a franchisee does not have to pay a transfer fee under specific circumstances. The standard transfer fee for a Brain Balance franchise is $10,000, which is due upon completion of the transfer. However, this fee is waived if the franchise is transferred to the franchisee's spouse or adult child.
This waiver of the transfer fee can be a significant benefit for franchisees who plan to pass their business on to family members. It reduces the financial burden associated with transferring ownership and allows for a smoother transition. Without this waiver, the franchisee would need to pay Brain Balance $10,000 for the transfer.
It is important to note that this waiver is specifically for transfers to a spouse or adult child. Transfers to any other party would be subject to the standard $10,000 transfer fee. This fee compensates Brain Balance for the costs associated with training the new transferee and other related administrative expenses.