Does the Assignee need consent to transfer the Brain Balance assignment to another person or entity?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Assignor shall not transfer or assign any of its rights and/or obligations under this Assignment without the prior written consent of Assignee, which consent may be granted, conditioned or denied in Assignee's sole and absolute discretion. This Assignment is fully transferable by Assignee to any person or entity. This Assignment is binding upon and inures to the benefit of the parties hereto and their respective successors, heirs, representatives, and permitted assigns.
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, the Assignee does not need consent to transfer the Brain Balance assignment to another person or entity. The document states that the assignment is fully transferable by the Assignee to any person or entity.
This means that if a Brain Balance franchisee assigns their lease, the party to whom it is assigned (the Assignee) has the right to further transfer that assignment without needing to seek additional approval. This provides the Assignee with flexibility in managing the lease and potentially subleasing or reassigning it as business needs evolve.
This clause benefits the Assignee, as it allows them to freely transfer the assignment. However, the original Assignor remains liable under the lease, even after the assignment. This is a standard practice in franchising, where the franchisor aims to maintain control and ensure business continuity while providing some flexibility to franchisees.