Brain Balance Centers

Of the 22 units that closed between 2022-2024 (8+6+8 closures), how many were attributable to franchisee decision to exit versus franchisor action, and what were the primary stated reasons for closures?

Given the 11.6% annual exit rate and 20.7% three-year turnover rate, what specific operational or market challenges is the franchisor addressing to stabilize unit retention?

How does the franchisor define and categorize the 'Ceased Other' closures (5 in 2022, 4 in 2023, 7 in 2024)—what circumstances led to these exits?

Can you provide the breakdown of remaining 65 units by performance tier (top/middle/bottom quartile by revenue) to understand which unit profiles are most at risk of closure?

The system lost 4 net units in the past year while reporting only 4 transfers and 0 terminations—does this indicate voluntary closures are accelerating?

What support or intervention programs does the franchisor offer to underperforming units before they reach closure, and how many units are currently in such programs?

Given that the non-compete clause is only 1 year and 50 miles (compared to the typical 2 years and 10-25 miles), how many former franchisees have opened competing supplemental education services within 1 year post-closure, and in what geographic areas?

The Investment score of 65 is below the typical 75.0 for this category—what capital expenditures or working capital have franchisees required beyond the $45,000 franchise fee in their first year?

With System Health scoring only 26 (far below the 50.0-75.0 typical range), what specific metrics or operational issues drive this low score, and what is the franchisor's remediation plan?

Can you provide Item 19 data broken down by franchise age (units opened 0-1 years, 1-3 years, 3-5 years, 5+ years) to show whether underperformance is concentrated in newer or mature units?

The Ongoing Fees score of 61 is below typical—are there any additional fees beyond the stated 8% royalty, 2% ad fund, and $154 technology fee that franchisees should anticipate?

What is included in the monthly $154 technology fee, and has this fee increased since the franchise agreement was signed?

How many disputes or complaints has the franchisor received in the past 3 years, even if not pursued to litigation, given the requirement for binding arbitration in Delaware?

Given the binding arbitration requirement in Wilmington, Delaware with a 1-year statute of limitations, what is the average cost and timeline for arbitration cases brought by franchisees?

The personal guarantee and spousal liability requirements apply to owners with 10%+ ownership—how have these been interpreted and enforced in prior disputes or closures?

Can you provide examples of the 11 curable defaults and 8 non-curable defaults with typical timeframes franchisees are given to cure payment or operational breaches?

With exclusive territory protection confirmed, have there been any encroachment disputes in the past 3 years, and how were they resolved?

What is the renewal process and timeline for the 1 renewal option (5 years), and what percentage of franchisees historically exercise renewal versus allow franchise agreements to expire?

The Risk Factors score of 63 is below the typical 70.25-80.0 range—what specific operational or market risks does the franchisor identify as most critical for franchisees to understand?

Are there any geographic markets or regions where Brain Balance franchises have experienced significantly higher closure rates, and should unit location be factored into site selection due diligence?