In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the Brain Balance franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Brain Balance franchise, based on Item 7 of the company’s 2019 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Brain Balance franchise, based on Items 5 and 6 of the company’s 2019 FDD

• Section IV – Number of franchised and company-owned Brain Balance outlets at the start of the year and the end of the year for 2016, 2017, and 2018, based on Item 20 of the company’s 2019 FDD

• Section V – Presentation and analysis of Brain Balance’s financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:

• 2014, 2015, 2016, 2017, and 2018 average, maximum, minimum, median, and total gross sales for all franchisee-owned Brain Balance Centers that were open for the entire 2014, 2015, 2016, 2017, and 2018 calendar year, respectively

• 2014, 2015, 2016, 2017, and 2018 actual annual gross sales for the Top 10 and Bottom 10 franchisee-owned Brain Balance Centers that were open for the entire 2014, 2015, 2016, 2017, and 2018 calendar year, respectively

• 2014, 2015, 2016, 2017, and 2018 average, maximum, minimum, median, and total gross sales for the Top Third, Middle Third, and Bottom Third of franchisee-owned Brain Balance Centers that were open for the entire 2014, 2015, 2016, 2017, and 2018 calendar year, respectively

Section I – Background Information

18 Things You Need to Know About the Brain Balance Franchise

Announces Collaboration with Renowned Neuroscientist

1.  In late May 2019, Brain Balance Achievement Centers announced a nationwide collaboration with Cambridge Brain Sciences, a leading online platform for cognitive assessments, co-founded by renowned neuroscientist Dr. Adrian Owen. Brain Balance is collaborating with Cambridge Brain Sciences on a variety of efforts, including providing access to data in an effort to study changes in cognitive development over time and how developmental concerns impact cognition in children and young adults.

2.  The research study, which Cambridge Brain Sciences began in May, is open to the general public as well as current enrollees in the Brain Balance program. The data collected over the next year, through both child and young adult cognitive assessments, will allow scientists at Cambridge Brain Sciences to better understand what cognitive development looks like in individuals who struggle with a myriad of challenges, including, but not limited to, ADHD, ASD, dyslexia, processing disorders, high functioning autism, and anxiety.

3.  According to Dr. Adrian Owen, co-founder and chief scientific officer of Cambridge Brain Sciences, “For the past 30 years, my research has focused on furthering our understanding of the brain. I’m looking forward to collaborating with Brain Balance on this ongoing study that aims to shed light on how cognition develops in children and young adults in a more comprehensive way than has previously been possible.”

4.  Dr. Rebecca Jackson, vice president of outcomes and programs for Brain Balance Achievement Centers, added, “Dr. Owen and the entire Cambridge Brain Sciences team are at the forefront of assessing and understanding brain health in today’s scientific community. This collaboration will help provide a deeper understanding of how cognition changes throughout development. We know first-hand how many thousands of lives Brain Balance has transformed, and the findings of this study will only strengthen our validation that our program works and will allow us to continue to evolve to help families see real results.”

5.  The research data will partially be collected from Brain Balance centers nationwide, which will begin using Cambridge Brain Sciences’ cognitive testing in part of their student assessments. Assessments are given at the beginning and end of the Brain Balance program to compare data and showcase individual results.

6.  The Cambridge Brain Sciences tool is a web-based platform for the assessment of cognitive function and the data from the initial and final assessments will be collected for research purposes. This tool measures key areas including concentration, memory, reasoning, and verbal skills.

7.  Brain Balance centers nationwide began using Cambridge Brain Sciences’ cognitive testing in May as part of a new young adult program, the Brain Balance Summer College Reboot, and rolled out to all students enrolled in a Brain Balance program in early summer 2019.

8.  The recently launched Brain Balance Summer College Reboot Program focuses on young adults aged 18 to 24 and address the root cause of why young adults often struggle in college, including a student’s ability to focus and function. The program engages the whole brain and body by combining processing speed exercises, sensory motor skills training, critical listening and comprehension, and ongoing student support.

Launches College Reboot Program Nationwide

9.  At the end of October 2019, Brain Balance Achievement Centers announced the nationwide rollout of its College Reboot program. The program, which debuted as a pilot over the summer, is aimed at addressing the root cause of why young adults often struggle in college, and improves a student’s focus, builds confidence, and helps reduce anxiety and stress.

10.  This personalized, eight-week program is designed to help high school graduates and college-aged students by strengthening brain connections. The College Reboot program seeks to improve:

• Attention and focus;
• Motivation and confidence;
• Learning and listening skills;
• Family and social relationships; and
• Levels of worry and stress.

11.  Dr. Rebecca Jackson, vice president of outcomes and programs for Brain Balance Achievement Centers, said, “This past summer we launched the College Reboot program as a pilot, and the results were overwhelmingly positive. For several years, our families have been asking about a program for young adults, so based on popular demand, and the positive feedback from enrollees and franchisees, we’ve decided to implement the program nationwide at participating centers.”

12.  Every Brain Balance program begins with a comprehensive assessment to gauge students’ abilities. A customized program is then created that focuses on the root cause of the student’s struggles. The College Reboot program combines processing speed exercises, sensory motor skills training, critical listening and comprehension, with ongoing student support.

13.  Kayla Henkel, a Brain Balance graduate, said, “I always did well in high school. I didn’t expect to struggle, but I soon learned that college was a league of its own. I had just over two months before returning to school, and I desperately wanted to change the trajectory of where my life was headed. So, I enrolled in Brain Balance. When I returned to school I felt like a completely different student. I made the President’s list, and graduated Magna Cum Laude. It changed my life forever.”

Company History

14.  Brain Balance Achievement Centers was founded in 2007 by Dr. Robert Melillo and William Fowler. The Brain Balance program was first developed by Dr. Melillo, a chiropractor, back in the 1990s. Melillo noticed that there was a marked increase in children with learning and behavioral issues visiting his practice. After conducting research to better understand disorders like ADHD, Dyslexia, Processing Disorders, and Autism Spectrum Disorders, Melillo developed the Brain Balance program.

15.  In 1994, Melillo began implementing this integrated approach to helping children with learning and developmental disorders in his own practice. Over the next few years, he refined the program and wanted to offer it on a larger scale. After partnering with Fowler, a pioneer in business development and veteran of Wall Street, in 2006, Melillo opened the first Brain Balance Achievement Center in 2007. By 2018, there were 110 centers around the country.

16.  Despite Brain Balance’s growth, Dr. Melillo and his claims that the Brain Balance program helps children overcome their learning and behavioral disorders have come under fire. In the scientific and medical community, Brain Balance has been criticized for the lack of scientific evidence for its marketing, as well as its claims about neuroplasticity and other aspects of brain development.

17.  Many of Dr. Melillo’s claims have now been debunked by the Wisconsin Department of Health Services and Brain Balance no longer advertises these aspects of its program, opting instead to state that the Brain Balance program enriches the lives of children by making them the very best that they can be.

Entrepreneur’s Franchise 500

18.  Brain Balance did not rank on Entrepreneur’s 2019 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Brain Balance franchise costs, based on Item 7 of the company’s 2019 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Brain Balance’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2019 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2016

• Outlets at the Start of the Year:  76
• Outlets at the End of the Year:  94
• Net Change:  +18

2017

• Outlets at the Start of the Year:  94
• Outlets at the End of the Year:  107
• Net Change:  +13

2018

• Outlets at the Start of the Year:  107
• Outlets at the End of the Year:  110
• Net Change:  +3

Company-Owned

2016

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  5
• Net Change:  +1

2017

• Outlets at the Start of the Year:  5
• Outlets at the End of the Year:  3
• Net Change:  -2

2018

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  3
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2019 FDD) and Analysis

• Brain Balance is providing historical revenue information (without including expense items) for all franchisee-owned Centers that were open for the entire year for each year stated below. Brain Balance has excluded Centers which opened or closed permanently in 2018.

• The first chart shows the highest performing Center, the lowest performing Center, the average performance of the full group, and the median Gross Revenue number for the group for each year. The total number of Centers that were open for the entire year is shown as “Number of Centers.”

• The second chart shows the top and bottom ten performing Centers by Gross Revenue for each year.

• The third chart shows each group for each year, divided into performance categories.

• The numbers provided in this Item 19 were compiled from the voluntary reporting information that the franchisees provided to Brain Balance pursuant to the Franchise Agreement, data Brain Balance pulled from its required Customer Relations Management System, or, in a few instances, from the results of an audit Brain Balance conducted of a particular Center’s financials. In general, these revenue numbers have not been verified by Brain Balance or independently audited.

• A new franchisee’s individual financial results may differ from the results provided below.

• The earnings claims figures do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenues or gross sales figures to obtain your net income or profit.

Part 1 – Gross Sales (Whole Group)

2014