AStrongest tier79/100FDD 2026
Brain Balance Achievement Centers: Litigation & Risk
Education · FDD Items 3, 4 & 5
Lower Risk
No litigation cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
- Cases disclosed
- 0
- Total from FDD Items 3 and 4
- Bankruptcy (Item 4)
- None
- Franchisor or officer bankruptcy
- Verdict score
- 79 / 100
- FranchiseVerdict composite · higher is better
- Rating
- A
- A / B / C / D / F verdict grade
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Charge-off rate is the share of loans that were charged off or settled for less than the full balance.
- Total 7(a) loans
- 3
- Government-backed loans issued
- Charge-off rate
- N/A
- vs 16% franchise average
- 5-yr charge-off rate
- N/A
- Defaults
- N/A
- Loans charged off or defaulted
- Total loan volume
- $331K
- Avg loan size
- $110K
- Participating lenders
- 0
FDD Items 5, 6 & 17: What You Give Up
Contract Risk Indicators
- Mandatory arbitration
- Not required
- You retain the right to sue in court
- Jury trial waiver
- Waived
- You give up the right to a jury trial
- Non-compete
- 2 yrs
- Post-termination restriction on similar businesses
- Franchisor can compete
- Yes
- Franchisor can open competing locations in or near your territory
- Right of first refusal
- Yes
- Franchisor can match any purchase offer when you try to sell
- Governing law
- Illinois
- State whose law governs disputes. Relevant if you're not based there
Extracted from FDD Item 3
Litigation Detail
None disclosed.
What drove the 79/100 verdict
Risk Score Breakdown
- 01MEDUnit count declined 5.8% YoY (65 → ~61 units), indicating system contraction and potential market saturation or franchisee dissatisfaction
- 02MEDNo Item 19 (Average Unit Volume) disclosed despite $686,778 reported average revenue — opacity on actual profitability and whether franchisees hit this benchmark
- 03MEDHigh initial investment range ($214K-$463K) relative to disclosed average revenue ($686K) creates thin margin for error; 8% royalty on $686K = $54.9K annual fee
- 04HIGHNo going concern statement is positive, but absence of net income disclosure raises questions about actual unit-level profitability and sustainability
- 05MINORCompetitive market (children's learning/neuro development) with established players; no clear differentiation metrics provided
- 06MINOR10-year term with $45K franchise fee suggests moderate-to-long commitment; declining unit count suggests franchisees may not be renewing or expanding
Severity inferred from FDD text. Not a regulatory or legal classification
Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice. Consult a franchise attorney before signing any franchise agreement.