Brain Balance Achievement Centers

The system has declined from 74 units to 65 units over 3 years with a 10.8% annual exit rate. What specific operational or market challenges is the franchisor addressing to reverse this declining unit trend?

Seven units closed in 2024 compared to 4-5 closures in prior years. What factors contributed to the increase in closures, and what support is the franchisor providing to struggling locations to prevent further exits?

With a System Health score of 26 (well below the typical range of 50-75), what specific metrics or indicators are driving this low score, and how is the franchisor addressing system health concerns?

The minimum revenue requirement of $400,000 gross in any 12-month period after year 3 resulted in termination if not met. How many franchisees have been terminated under this clause, and what percentage of units were operating below this threshold in the past year?

Given the 10.8% annual closure rate, can the franchisor provide details on the primary reasons units closed (financial difficulty, personal circumstances, dissatisfaction with support, market conditions, etc.)?

The non-compete clause allows only 1 year restriction within a 50-mile radius, which is narrower than typical. What is the franchisor's experience with former franchisees starting competing educational centers within this territory post-closure?

Item 19 financial performance data is available—can the franchisor clarify how many of the 65 current units reported financial data, what percentage are profitable, and what the median profit margins are after all fees?

Transfer fee is $10,000 while transfer rate is 6.2%. Can the franchisor explain the reasons franchisees are transferring units, and are they transferring to qualified buyers or are some transfers failing post-approval?

With a technology fee of $154 per month, what specific technology systems and support does this cover, and has this fee structure changed or are there plans to increase it?

The franchisor requires personal guarantees and spouse guarantees with unlimited scope. Can the franchisor explain whether any guarantees have been called upon, and how frequently franchisee personal assets have been pursued for franchise-related debts?

Interest accrues at 2% per month (24% annually) on late payments. How many franchisees have had late payment issues, and has the franchisor had to enforce this interest rate provision?

Support & Training scores 100 (above typical range) despite the declining unit count. What specific training and support services are offered, and why isn't this translating to unit retention?

Can the franchisor provide a breakdown of the 7 units that closed in 2024 by age of unit, location type, and franchisee demographics (new vs. experienced operators)?

The franchise has 0 terminations in the past year despite a 10.8% overall exit rate. Does the franchisor have a policy of allowing units to voluntarily close rather than terminating underperforming locations?

Territory is exclusive with a 50-mile non-compete. How many territories does the franchisor consider fully saturated, and are there restrictions on opening new units in high-density areas?

What is the typical break-even point for a new Brain Balance center in terms of months to profitability, and how does the franchisor support franchisees through the ramp-up period?

Can the franchisor provide references from franchisees who opened units in the past 2 years and remain open, as well as from franchisees who have closed units, to discuss their experiences?

The renewal fee is $10,000 and total potential term is 15 years. What percentage of franchisees renew at year 10, and what changes or fee adjustments occur at renewal?

Investment costs score 65 (below typical range of 75). What is the typical initial investment range (excluding franchise fee), and does this include working capital for 6-12 months of operations?