Brain Balance Startup Costs
Here’s how much it costs on average to start your own Brain Balance franchise. Item 7 from our FDD details your expenses.
Franchise costs for Brain Balance range from $256,876 to $478,876 on average according to our latest Franchise Disclosure Document (FDD).
Qualified candidates need a minimum net worth of at least $400,000 and liquid assets of at least $100,000. The details of your initial investment expenses are outlined below in Item 7 from our most recent FDD.

Type of Expenditure | Estimated Cost | Method of Payment | When Due | To Whom Payment Is to Be Made |
---|---|---|---|---|
Initial Franchise Fee | $45,000 | Lump Sum | Upon signing of Franchise Agreement | Franchisor |
Computer Software program license fee | $15,000 | Initial lump sum payment | Before Opening | Franchisor |
Parent enrollment kits | $2,000 | Initial lump sum payment | Before Opening | Third party vendor |
Computer Software program annual maintenance fee | $1,200 | Lump sum payment | Before Opening (payment amount prorated monthly in first year) and then annually on January 1 | Franchisor |
Business license, if necessary, incorporation, etc. | $250 to $2,500 | As incurred | Before Opening | Your attorney, accountant, and/or other third parties |
Real Property (2 months security) | $8,335 to $20,835 | Lump Sum | Before Opening and ongoing | Landlord |
Utility deposits and fees | $3,000 to $4,500 | Monthly | Before Opening and ongoing | Utility companies |
Insurance | $4,200 to $6,000 per calendar year, depending upon location | As arranged | Before Opening and ongoing | These monies are payable to insurance carriers with which a third-party vendor designated by the Franchisor has negotiated rates for all franchisees |
Construction and remodeling, including architect design | $20,000 to $184,000 | As incurred | Before Opening | Contractors, architect |
Furniture, inventory, and equipment (lease deposit and installation) | $30,000 to $36,000 | As incurred | Before Opening | Your suppliers and telephone company |
Technology | $17,700 to $21,300 | As incurred | Before Opening | Suppliers |
Start-up supp | $3,700 to $4,500 | As arranged | Before Opening | Suppliers |
Signage | $9,100 to $11,000 | As arranged | Before Opening | Suppliers |
Call Center | $495 | Lump sum | Before Opening | Designated vendor |
Brain Balance Program® CRM System | Each Center License will cost $396 per year | Debited via ACH | Payable monthly | Franchisor |
Credit Card System | $0 - $350 | Initial lump sum payment, monthly fees and annual PCI compliance fee | Before opening and the day of the month designated by the clearing house services company | System vendor or your vendor |
Email and other collaboration tools | First 2 users are free of charge; additional users are $60/year. | Debited via ACH | Payable annually, prorated by start date in the first year. | Franchisor (only if more than 2 are requested) |
Accounting Software & Bookkeeping | $1,500 - 1,800 | One-time purchase and bookkeeping service for the 1st 6 months of operation. | You may elect to purchase additional software features | Third-party vendor designated by the Franchisor or an approved service company. |
Additional Funds (3 months of working capital) | $80,000 to $100,000 | As incurred | As incurred | Landlord, suppliers, and employees |
Pre-Opening travel and training costs | $5,000 to $7,000 | As arranged | Before Opening | Suppliers of transportation, food, and lodging |
Pre-Opening Advertising | $10,000 to $15,000 | As arranged | Before Opening | Advertising media, grand opening activities |
Total of all Initial Investment Costs: | $256,876 to $478,876 |
Note 1:
The initial non-refundable franchise fee is discussed in greater detail in Item 5.
Note 2:
You are required to purchase a minimum of 8 enrollment kits as initial inventory. Parent enrollment kits cost $250 each, and as you enroll families you will need to purchase more.
Note 3:
You need to retain an accountant, attorney, and other consultants.
Note 4:
At least 2,300 square feet (2,500 square feet is preferable) of usable square footage will be needed to operate your Franchised Business (see Item 11). You do not need a space larger than 2,700 square feet, and our estimate is based on a space between 2,300 and 2,700 square feet. 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.
Note 5:
The figures in the chart are based upon the estimated average premiums calculated by the insurance broker designated by us who has negotiated rates with carriers nationally as first years' 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. (See Item 8.)
Note 6:
Our estimate for construction costs is based on you following our recommended build-out guidelines for a leased space of the square footage we recommend (see Note 4, above). If you choose to upgrade to more luxurious building finishes than we recommend, or if you lease and build out a significantly larger space, your cost may exceed our estimate. These estimates are based on build out costs as reported to us 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 we have factored that into our costs. Franchisees reported TI ranging from zero to $165,000. Our estimates also removed abnormally low outliers caused by conditions such as a family member being a contractor, or build-outs completed at no cost by the landlord, as these are unusual circumstances we do not expect to be replicated in our estimates. 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.
Note 7:
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.
Note 8:
Assumes all furniture and equipment is purchased.
Note 9:
You may obtain your office computer hardware from any reputable supplier. You must ensure that all programs and applications running on your computer are legally licensed and that you have up-to-date anti-virus software installed on each machine. 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. We will provide support regarding any IT issue related to the Software you are using in connection with the Brain Balance Program® (CRM or email, for example), but you will be responsible for computer hardware, Internet access, other software installed, and security, which includes ensuring that your location is PCI compliant.
Note 10:
We estimate that the range given will be sufficient to cover general office supplies, such as files, folders, paper, and writing utensils for the first three (3) months of the operation of the Franchised Business. We have created brand identity for marketing and advertising materials that must be purchased from an approved vendor.
Note 11:
Once you are enrolled with the Call Center, you will pay approximately $10 per individual inquiry and approximately $150 per each new assessment booked, plus an initial setup fee of $495. These costs are included in our 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 our prior written approval.
Note 12:
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 Helpdesk.
Note 13:
The cost to implement a credit card processing system varies based on the vendor you choose. Some vendors will waive fees to acquire the hardware, while others will charge you an implementation fee and an annual PCI compliance fee. In addition to the cost to set up your credit card processing system, you will incur transaction fees when you accept credit card payments. We expect that the merchant services agreement transaction fee will be no greater than 2% generally, 2.5% for debit cards and 2.9% for American Express. If you do not use our recommended supplier and you pay credit card servicing transaction fees that are higher than the set percentage, we will deduct only the set percentage for credit card transactions from your GR; conversely, if you are able to negotiate a lower credit card servicing transaction fee than what we have negotiated for all Brain BalanceTM Centers, you will be permitted to retain the differential for the GR on which the Royalty is based.
Note 14:
You are required to acquire and use an accounting software that meets our standards (currently QuickBooks), which you may either purchase or license on a monthly basis. In addition, we will require you to use the services of a professional bookkeeper for at least the first six months of operation that must be approved by the Franchisor. In our discretion, we can continue to require you to use a professional bookkeeping service.
Note 15:
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 minimum $4,000 local advertising minimum, supplies, phones, utilities, and miscellaneous expenses, to the extent your collected revenue does not cover these costs. Amounts will vary depending on the salaries, provisions of various leases, and utilities' policies. New businesses often generate a negative cash flow. As shown in Item 6, the Call Center setup requires an initial fee of $495. The amount should be sufficient to cover your expenses during the first three (3) months of the operation of your Franchised Business. The numbers provided are only estimates, and it is possible that additional working capital will be necessary during this time period.
Note 16:
These costs will vary significantly depending on the distance traveled and the type of accommodations selected.
Note 17:
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.
Note 18:
BBF does not finance your initial investments. You may be able to obtain financing from third parties for these expenses. BBF makes no representations as to the availability of financing or any estimate regarding loan repayments or financing costs with respect thereto as payments may vary widely depending on the amount financed, the type of collateral supplied, the term of the loan, and other factors. The availability and terms of financing from third parties will vary depending on factors including the availability of financing generally, the credit worthiness of a Franchisee, other security available, and the policies of lending institutions as to the type of business to be operated by a Franchisee. These figures should be reviewed carefully with a business advisor before making the decision to purchase a Franchised Business.
Note 19:
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.

The labor model
For your Brain Balance franchise, you’ll need college-educated support staff to help you carry out your mission. You’ll need:
- A full-time Center Director (CD) who manages parents and the sales/enrollment process. Sometimes franchisees prefer to serve in this role themselves.
- A full-time Program Director who manages the part-time coaches, including academic coaches and sensory motor coaches. The number of people will depend on your client load.
- A full-time Assistant Director (AD) who handles the front desk and other administrative duties.
- Someone in charge of local marketing, typically either the CD or AD.
Brain Balance corporate provides detailed job descriptions for each role, and we also provide comprehensive training for each of the roles. Training is available onsite, as well as online.