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Considering a Brain Balance Franchise? Don’t Overlook These 25 Important Franchise Fees

by Franchise Chatter on October 26, 2017

in Child-Related Franchises, Education Franchise, Franchise Fees



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Don't Invest in a Franchise Until You Check Out This List

If you are considering a Brain Balance franchise, don’t get blindsided by these 25 important franchise fees (from the initial franchise fee, to the royalty fee, to 23 other fees found in Items 5 and 6 of Brain Balance’s 2017 FDD).

1.  Initial Franchise Fee:  $45,000



  • The initial uniform franchise fee for a Brain Balance Center is $45,000 and is payable in a lump sum at the time you sign the Franchise Agreement.

2.  Software Fees:  $15,000 for the Software license and a prorated amount of the $1,200 annual software maintenance fee for the balance of the first year of operation at the time the Software is activated

  • You are also required to license the proprietary software (“Software”) from Brain Balance pursuant to the Software License Agreement, pay Brain Balance $15,000 for the Software license, and pay Brain Balance a prorated amount of the $1,200 annual software maintenance fee for the balance of the first year of operation at the time the Software is activated.

3.  Royalty:  8% of Gross Revenues, with a minimum of $1,000 per calendar month

  • Due Date:  Payable monthly on or about the 7th day of the month.

4.  Local Advertising:  a minimum of $6,000 per calendar month, based on Brain Balance’s direction as to allocation among various marketing channels

  • Due Date:  As incurred.
  • Your minimum expenditure per calendar month is to be spent on local media, and you are encouraged to spend more.

5.  Regional Advertising Coop:  a variable amount ranging from $0 to $6,000 depending on your region, but typically between $2,000 and $4,000 in most regions

  • Due Date:  As incurred.
  • This money is typically pooled together with local advertising requirements by all the Centers in a region, in order to get the best media purchases.

6.  National Advertising Fund:  2% of Gross Revenue, with a minimum of $200 per calendar month

  • Due Date:  Payable monthly on or about the 7th day of each month.

7.  Additional Training Fee:  if:  (1) requested by franchisee, (2) required by Brain Balance in the event you fail to master the principles and objectives of the Licensed Technology, (3) System development results in new principles or protocols, or (4) you replace either your Center Director or Program Director, additional consultation services will be charged at a half-day rate of $500 (less than 4 hours of training) and full-day rate of $1,000, plus airfare, lodging, and travel expenses



  • Advanced Training is required for all franchisees related to enrollment enhancement, Sensory Motor, and academic administration and marketing, one time per year, for a period of between 2 and 5 days, with attendance mandatory for either the Center Director or Program Director, at a cost of $150 per day, plus travel expenses.
  • Due Date:  Due 1 week prior to the start of consultation/training.
  • Your initial franchise fee includes (a) 30-60 hours of online training; (b) 11 days at Brain Balance’s training center in Hauppauge, New York, at a U.S. franchise location of Brain Balance’s choice, or at its training facility in Southern California; and (c) 2 days at your Center location for site inspection and a brief operations overview.
  • In addition, you will receive approximately 10 hours of telephone or webinar training before you open and start to have students participate in the program.
  • You may also be required, at Brain Balance’s discretion, to travel with your staff to an approved regional Center to complete shadow training by their staff for 2-3 days, depending upon staff availability. These fees are debited via ACH.

8.  Coaching Services:  $70 per hour for a minimum of 2 hours per week relating to sales and marketing and enrollment enhancement until you achieve 3 consecutive months of a 55% enrollment rate, and upon request thereafter

  • Due Date:  Payable the 1st of the month for each prior month.
  • These are debited via ACH monthly and payable to Brain Balance between the date of your Soft Opening and when your Center achieves (or subsequently, fails to retain) 3 consecutive months of a 55% enrollment rate.

9.  Email and Other Collaboration:  first 2 users are free of charge; additional users are $60 per year

  • Due Date:  Payable annually, prorated by start date.
  • Gmail and Google applications. Fees are debited via ACH and payable to Brain Balance.

10.  Accounting Software:  amount varies based on if you purchase the software or use an online license. Prices can range from $10-$25/month or $300-$500 for software purchase depending on your package.

  • Due Date:  One-time purchase or monthly depending on what package you choose. You may elect to purchase additional software features.

11.  Taxes:  will vary

  • Due Date:  As required by law.
  • These are payable to Brain Balance if it is required to pay any taxes (other than income tax) on any fees that you pay to it.

12.  Software License Fee:  $15,000 for each Center

  • Due Date:  Prior to opening.
  • Payable to Brain Balance pursuant to the Software License Agreement.

13.  Software Maintenance Fee:  $1,200 per year for each Center



  • Due Date:  Payable annually, prorated by start month.
  • Payable to Brain Balance pursuant to the Software License Agreement and debited via ACH.

14.  Brain Balance Program CRM Third-Party Platform License:  each Center license will cost $396 annually

  • Due Date:  Payable January 1, prorated by start month.
  • These fees are debited via ACH and payable to Brain Balance.

15.  Audit:  cost of audit, plus out-of-pocket disbursements; amount can vary from $750 to $10,000 based on the work required to complete the audit

  • Due Date:  Upon completion of audit.
  • Payable if an audit shows an understatement equal to or greater than 2% of either the royalty or advertising fund contributions, which should have been debited via ACH for the audited period.
  • Amount unpaid plus compounded interest will also be due upon completion of the audit.

16.  Annual Convention:  $600 for each program registration attendee; $250 for each person who does not attend workshop sessions

  • Due Date:  Prior to Convention registration.
  • This cost is subject to increase. This is the current cost for Brain Balance’s Annual Convention. Travel, lodging, and food expenses will be in addition to the registration fee, some of which will be discounted or subsidized by Brain Balance.

17.  Interest:  2% per month compounded or maximum rate permitted by law, whichever is less

  • Due Date:  Upon demand.
  • Payable on all payments that are 15 or more days overdue.

18.  Costs and Attorneys’ Fees:  will vary under circumstances

  • Due Date:  As incurred.
  • Payable upon termination of the Franchise Agreement, in an action to collect unpaid amounts owed to Brain Balance and if it needs to enforce the Franchise Agreement by injunctive relief.

19.  Relocation Fee:  then-current fee

  • Due Date:  As incurred.
  • Brain Balance must approve any relocation of your Center and you must pay Brain Balance its then-current relocation fee.
  • As of the date of the 2017 Disclosure Document, the relocation fee is $3,000.

20.  Indemnification:  will vary under circumstances

  • Due Date:  As incurred.
  • You must reimburse Brain Balance if it is held liable for claims arising from your operations and under certain circumstances set forth in the Software License Agreement.

21.  Insufficient Funds:  $35 charge per incident

  • Due Date:  As incurred.
  • Payable to Brain Balance if an ACH transaction cannot be completed for any reason.

22.  Renewal Fee:  $10,000 or $15,000, depending on most recent annual GR

  • Due Date:  Upon approval of renewal by Brain Balance each time you renew.
  • $10,000 if most recent 12-month GR was greater than $500,000; $15,000 if most recent 12-month GR was less than $500,000.

23.  Soft Opening Date Change Expenses:  will vary under circumstances

  • Due Date:  Payable as soon as franchisee’s change to Soft Opening date results in nonrefundable expenses.
  • Payable to Brain Balance when it incurs non-refundable expenses due to franchisee changing Soft Opening date.

24.  Transfer Fee by Transferee:  $10,000

  • Due Date:  Upon completion of transfer.
  • Payable to Brain Balance when franchise is transferred; there is no charge if transfer is to your spouse or adult child.

25.  Transfer Fee by Transferor:  5% applied to sliding scale based on purchase price for Center; between $5,000 and $40,000

  • Due Date:  Upon completion of transfer.
  • Transfer fee payable to Brain Balance for transfers in which more than $100,000 is paid to transferor.

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