What must BB Franchising LLC provide to a Brain Balance franchisee after registering a modification application with the California Department?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
Before the franchisor can ask you to materially modify your existing franchise agreement, Section 31125 of the California Corporations Code requires the franchisor to file a material modification application with the Department that includes a disclosure document showing the existing terms and the proposed new terms of your franchise agreement.
Once the application is registered, the franchisor must provide you with that disclosure document with an explanation that the changes are voluntary.
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, if BB Franchising LLC seeks to materially modify an existing franchise agreement with a franchisee in California, it must first file a material modification application with the California Department of Financial Protection and Innovation. This application must include a disclosure document that clearly shows both the existing terms of the franchise agreement and the proposed new terms.
Once the California Department of Financial Protection and Innovation registers the modification application, Brain Balance is then required to provide the franchisee with the disclosure document. This document outlines the changes being proposed to the franchise agreement.
Furthermore, Brain Balance must provide an explanation to the franchisee that the proposed changes to the franchise agreement are voluntary. This ensures the franchisee understands they are not obligated to accept the modifications and can make an informed decision.