Is Brain Balance allowed to grant franchises for Brain Balance Centers outside of a franchisee's territory?

According to Brain Balance's 2025 Franchise Disclosure Document, Brain Balance retains the right to grant franchises for Brain Balance Centers outside of a franchisee's territory. Specifically, Brain Balance has the right to establish or operate, and grant franchises for others to establish or operate, Brain Balance Centers or other businesses offering the Brain Balance Program or other products or services under the Brain Balance marks at any location outside the franchisee's territory, regardless of proximity to the franchisee's center. This means that while a franchisee is granted an exclusive territory, Brain Balance is not restricted from expanding its brand presence outside of that territory through additional franchises.

This aspect of the franchise agreement is important for prospective franchisees to understand, as it clarifies the scope and limitations of their exclusive territory. While franchisees are protected from direct competition from other Brain Balance centers within their defined territory, they should be aware that Brain Balance can expand its network of centers in areas adjacent to or even near their location. This could potentially impact a franchisee's market share or growth opportunities, especially if new centers are established in nearby areas that draw customers from the same demographic.

Furthermore, Brain Balance also retains the right to market, sell, or distribute any services of any kind, including books, audio tapes, video tapes, computer software, and computerized instruction, to any person, organization, or public or private entity, using the Brain Balance marks or other marks, through any channel of distribution, including through any computer service, email, the Internet, or any computer, television or other electronic device, bookstores or any other retail Centers, mail order, or counseling center, within and outside the franchisee's territory. This broad reservation of rights allows Brain Balance to explore various avenues for reaching customers and generating revenue, which may or may not directly benefit the franchisee. Franchisees should consider how these retained rights might affect their business and discuss any concerns with Brain Balance before entering into a franchise agreement.

In addition to the above, other Brain Balance franchises may solicit and accept customers for their Centers from within a franchisee's territory and will not be required to pay compensation for soliciting or accepting customers from within the franchisee's Territory. However, the franchisee may not solicit and accept customers from outside their Territory. The franchisee may not use other channels of distribution that Brain Balance has not approved including catalog sales, telemarketing, other direct marketing, or remote coaching other than as specifically permitted. The franchisee will not be entitled to establish or maintain an independent Website via the Internet.