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Earnings Claims of Top Franchises Revealed

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Franchise Costs: Detailed Estimates of Brain Balance Franchise Costs (2015 FDD)

by Franchise Chatter on May 28, 2014

in Child-Related Franchises, Education Franchise, Franchise Costs



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This post was updated on August 18, 2015 to reflect information from Brain Balance’s 2015 FDD (Item 7).

Detailed Estimates of Brain Balance Franchise Costs Based on Item 7 (Estimated Initial Investment) of Brain Balance’s 2015 Franchise Disclosure Document

1.  Initial Franchise Fee:  $45,000

  • The initial non-refundable franchise fee is deferred.

2.  Computer Software Program License Fee:  $10,000

3.  Nutrition Kits:  $2,000

4.  Computer Software Program Annual Maintenance Fee:  $1,200

5.  Business License (if necessary), Incorporation, etc.:  $100 to $2,500

  • You may need to retain an accountant, attorney, and other consultants.

6.  Real Property (2 months security):  $6,000 to $10,000

  • 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 office 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 $5,000 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:  $70,500 to $125,000

10.  Furniture, Inventory, and Equipment (Lease Deposit and Installation):  $28,400 to $35,400

  • This expense includes a facsimile machine, copier, 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.  Computer Hardware:  $10,600 to $14,800

  • 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:  $800 to $1,200

  • 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:  $5,000 to $8,000

14.  Google Place Listings for Your Brain Balance Center:  As required by the vendor

15.  Brain Balance Program CRM:  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:  $250 for one-time installation fee; monthly commission may vary based on provider and volume; annual PCI compliance fee of $60

17.  Email and Other Collaboration Tools:  First two users are free of charge, additional users are $5/month

18.  QuickBooks Accounting Software:  $200 for software purchase

19.  Additional Funds (3 months):  $80,000 to $95,000

  • 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, 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:  $15,000 to $25,000

  • 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.  Grand Opening Fee:  $5,000

  • This fee covers the cost of your Grand Opening events, including marketing, speaker engagements, and planning. If you would like Dr. Melillo, creator and co-founder of the Brain Balance program, to appear and speak at your Grand Opening events, there is an additional charge of $1,500.

23.  Total of All Initial Investment Costs:  $292,706 to $397,506

  • 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 office will be in one of these states, you may have an added expense for taxes.




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