Updated November 17, 2019.
Detailed Estimates of Brain Balance Franchise Costs Based on Item 7 (Estimated Initial Investment) of Brain Balance’s 2019 Franchise Disclosure Document
1. Initial Franchise Fee: $45,000
2. Computer Software Program License Fee: $15,000
3. Parent Enrollment Kits: $2,000
4. Computer Software Program Annual Maintenance Fee: $1,200
5. Business License (if necessary), Incorporation, etc.: $250 to $2,500
- You need to retain an accountant, attorney, and other consultants.
6. Real Property (2 months security): $8,335 to $20,835
- At least 2,300 square feet (2,500 square feet is preferable) of usable square footage will be needed to operate your Franchised Business. The cost per square foot of leasing commercial space varies considerably depending upon the Center location and market conditions.
- The cost of leasing commercial space is estimated to be between $20 and $50 per square foot, but may be higher in major metropolitan areas.
7. Utility Deposits and Fees: $3,000 to $4,500
8. Insurance: $4,200 to $6,000 per calendar year, depending upon location
- The figures in the chart are based upon the estimated average premiums calculated by the insurance broker designated by Brain Balance who has negotiated rates with carriers nationally as first year’s premium for Commercial General Liability and Professional Liability coverage, including, but not limited to, education services ($1,000,000 per occurrence and $3,000,000 in the aggregate); commercial automobile liability insurance covering vehicles that are owned, non-owned, or hired by the Franchised Business, providing bodily injury and property damage; Employment Practices Liability Insurance (“EPLI”); and workers’ compensation and disability insurance, if required.
9. Construction and Remodeling, Including Architect Design: $20,000 to $184,000
- Brain Balance’s estimate for construction costs is based on you following the recommended build-out guidelines for a leased space of the square footage it recommends. If you choose to upgrade to more luxurious building finishes than Brain Balance recommends, or if you lease and build out a significantly larger space, your cost may exceed these estimates.
- These estimates are based on build-out costs as reported to Brain Balance by franchisees for Centers that opened 2016-2017. During this time, franchisees received an average of approximately $61,000 in Tenant Improvement Credits (“TI”), and Brain Balance has factored that into its costs. Franchisees reported TI ranging from zero to $165,000.
- The cost per square foot during this time had both an average and median of $35/sq. foot (excluding TIs), and the range was as low as $6 and as high as $70.
- Approximately 32% of all build-outs were less than $20 per square foot. 24% were $20-$40 per square foot, 32% were $40-$60 per square foot, and 12% of franchisees chose to spend more than $60 per square foot.
10. Furniture, Inventory, and Equipment (Lease Deposit and Installation): $30,000 to $36,000
- This expense includes copier/scanner/fax, telephone equipment, desks, chairs, file cabinets, program inventory, supplies, the Customer Relationship Management Invoicing System and miscellaneous equipment, and estimated telephone company deposits.
- The items associated with the program inventory and supplies will need to be purchased; most cannot be leased.
- Assumes all furniture and equipment are purchased.
11. Technology Costs: $17,700 to $21,300
- You may obtain your office computer hardware from any reputable supplier.
- The fee reflects the approximate cost to purchase the equipment; you may also hire an information technology (IT) system administrator to help you with the installation and configuration of your network, firewall, and Internet access.
12. Start-up Supplies: $3,700 to $4,500
- Brain Balance estimates that the range given will be sufficient to cover general office supplies, such as files, folders, paper, and writing utensils for the first three months of the operation of the Franchised Business.
- Brain Balance has created brand identity for marketing and advertising materials that must be purchased from an approved vendor.
13. Signage: $9,100 to $11,000
14. Call Center: $495
- Once you are enrolled with the Call Center, you will pay approximately $10 per individual inquiry and approximately $150 per new assessment booked, plus an initial setup fee of $495. These costs, except the initial setup fee, are included in Brain Balance’s estimate of Additional Funds.
- As an alternative to using the Call Center, you may employ an experienced sales person who will be solely responsible for responding to incoming leads, provided you obtain Brain Balance’s prior written approval.
15. Brain Balance Program CRM System: each Center License will cost $396/year
- The Brain Balance Program Customer Relations Management System enables you to track leads, assessments, enrollments, and customer service inquiries, and to prepare operations reports and to access a centralized Help Desk.
16. Credit Card System: $0 to $350
17. Email and Other Collaboration Tools: first two users are free of charge, additional users are $60/year
18. Accounting Software and Bookkeeping: $1,500 to $1,800
19. Additional Funds (3 months of working capital): $80,000 to $100,000
- Capital will be needed to support on-going expenses, such as payroll, office rental expenses, cleaning service and supplies, repairs and maintenance, postage, credit card fees, advertising beyond the $4,000 local advertising minimum, supplies, phones, utilities, and miscellaneous expenses, to the extent your collected revenue does not cover these costs.
- The numbers provided are only estimates, and it is possible that additional working capital will be necessary during this time period.
20. Pre-Opening Travel and Training Costs: $5,000 to $7,000
- These costs will vary significantly depending on the distance traveled and the type of accommodations selected.
21. Pre-Opening Advertising: $10,000 to $15,000
- Prior to opening the Franchised Business, you will need to advertise for available staff positions as well as the opening of your franchise center within your community.
22. Total of All Initial Investment Costs: $256,876 to $478,876
- Brain Balance does not finance your initial investments. You may be able to obtain financing from third parties for these expenses.
- Some states impose sales and use taxes on goods and services. If your Center will be in one of these states, you may have an added expense for taxes.