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Brain Balance Franchise ProfileChildren’s Franchises > Children's Fitness |
What Are the Initial Investment Requirements for a Brain Balance Franchise?
To open a Brain Balance franchise, you will need to prepare for an initial investment that ranges from $339,486 to $583,431. This includes a franchise fee of $45,000. Additionally, you should have cash available between $100,000 and $150,000, and a net worth of $500,000 to $1,000,000 to meet the financial prerequisites for ownership.
What Are the Ongoing Fees Associated with a Brain Balance Franchise?
As a Brain Balance franchisee, you will be required to pay an ongoing royalty fee of 8% of your gross sales, along with a marketing fee of 2%. These fees are essential for maintaining brand standards and contributing to collective marketing efforts, which can help drive customer traffic to your location.
What Is the Average Revenue Potential for a Brain Balance Franchise?
The average annual revenue for a Brain Balance franchise unit is approximately $573,624, with a median revenue of $546,437. However, revenue can vary significantly, with the lowest reported annual revenue at $91,944 and the highest at $1,583,148. Understanding this range can help you gauge the potential profitability of your investment.
How Long Does It Typically Take to Break Even with a Brain Balance Franchise?
Franchisees can expect to reach their breakeven point within about 14 months of operation. The investment payback period is estimated at 12 months, which suggests that with effective management and operational strategies, you could start seeing a return on your investment relatively quickly.
Brain Balance Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Brain Balance Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 83 | 82 | 74 |
| Net Change YoY | -1 | -8 | |
| Franchised Units | 82 | 82 | 74 |
| Net Change YoY | 0 | -8 | |
| Corporate Units | 1 | 0 | 0 |
| Net Change YoY | -1 | 0 |
Investment Overview
The initial investment for a Brain Balance franchise ranges from $339,486 to $583,431, with a franchise fee of $45,000. Franchisees should be prepared for ongoing costs, including an 8% royalty fee on gross sales and a 2% marketing fee. To qualify, prospective franchisees need a cash reserve of $100,000 to $150,000 and a net worth of $500,000 to $1,000,000.
Financial Performance
On average, a Brain Balance unit generates annual revenue of $573,624, with a median revenue of $546,437. The revenue range is significant, with the lowest performing unit earning $91,944 and the highest achieving $1,583,148. This variation highlights the potential for both success and challenges in different market conditions.
Breakeven and Payback
Franchisees can expect to reach breakeven within approximately 14 months of operation. The investment payback period is estimated at 12 months, which indicates a relatively quick return on investment for those who effectively manage their operations and marketing strategies.
Unit Growth
Brain Balance has seen a decline in total units, with 74 franchised locations reported in 2022, down from 82 in both 2021 and 2020. This trend suggests the need for a strategic focus on franchisee support and market expansion to stabilize and grow the franchise network.
Operating Expenses
The average annual operating expenses for a Brain Balance franchise total approximately $5,617,346. This includes franchise-related expenses of $1,704,829, license and administrative service fees of $2,984,044, and advertising and marketing expenses of $928,473. Understanding these costs is vital for franchisees to effectively manage their profitability.
Corporate Structure
Brain Balance operates as a franchise system with a focus on delivering unique brain training programs. While the majority of its units are franchised, the company has transitioned to a model with no corporate-owned locations since 2021, emphasizing its commitment to franchisee-led growth and support within the network.
Frequently Asked Questions
The initial investment for a Brain Balance franchise ranges from $339,486 to $583,431, which includes the franchise fee and other startup costs.