What agreements are attached as exhibits to the standard Brain Balance Franchise Agreement?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 22 CONTRACTS
Attached as Exhibit A is a copy of the Franchise Agreement to be signed in connection with the Franchised Business offered in this Disclosure Document.
EXHIBITS TO THE FRANCHISE AGREEMENT (Standard agreement)
Attached as Exhibit 1 to Exhibit A is a copy of the Application License Agreement to be signed in connection with the Franchised Business offered in this Disclosure Document.
Attached as Exhibit 2 to Exhibit A is a copy of the ACH Agreement to be signed in connection with the Franchised Business offered in this Disclosure Document.
Attached as Exhibit 3 to Exhibit A is a copy of the Confidentiality and Non-Competition Agreement to be signed by your employees and all officers, directors, members, and partners who are not Franchisees.
Attached as Exhibit 4 to Exhibit A is a copy of the Conditional Assignment of Telephone Numbers to be signed in connection with the Franchised Business offered in this Disclosure Document.
Attached as Exhibit 5 to Exhibit A is a copy of the Conditional Assignment of Lease to be signed in connection with the Franchised Business offered in this Disclosure Document.
Attached as Exhibit 6 to Exhibit A is a copy of the Owner's Guaranty and Assumption of Franchisee's Obligations to be signed in connection with the Franchised Business offered in this Disclosure Document.
Attached as Exhibit 7 to Exhibit A is a copy of the California Addendum.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, several agreements are attached as exhibits to the standard Franchise Agreement. These exhibits cover various aspects of the franchise relationship and operational requirements.
Specifically, Exhibit 1 is a copy of the Application License Agreement, outlining the terms for using Brain Balance's proprietary software or applications. Exhibit 2 consists of the ACH Agreement, which likely details the procedures for automated payments between the franchisee and Brain Balance. Exhibit 3 is the Confidentiality and Non-Competition Agreement, which must be signed by the franchisee's employees and non-franchisee officers, directors, members, and partners to protect Brain Balance's confidential information and prevent unfair competition. Exhibit 4 is the Conditional Assignment of Telephone Numbers, which allows Brain Balance to take control of the franchisee's business phone numbers under certain conditions. Exhibit 5 is the Conditional Assignment of Lease, enabling Brain Balance to assume the franchisee's lease agreement if necessary. Lastly, Exhibit 6 includes the Owner's Guaranty and Assumption of Franchisee's Obligations, where the owner personally guarantees the franchisee's obligations under the Franchise Agreement. There is also a California Addendum listed as Exhibit 7.
Prospective franchisees should carefully review each of these exhibits with legal counsel to fully understand their obligations and the potential implications for their Brain Balance franchise. Understanding these agreements is crucial before signing the Franchise Agreement.