In California, which department should Brain Balance franchise documents be sent to?
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 the 2025 Brain Balance Franchise Disclosure Document, any modifications to an existing franchise agreement in California must be filed with the California Department of Financial Protection and Innovation. Specifically, Section 31125 of the California Corporations Code mandates that Brain Balance, as the franchisor, submit a material modification application to this Department. This application must include a disclosure document that clearly outlines both the current terms and the proposed new terms of the franchise agreement.
Once the California Department of Financial Protection and Innovation registers the application, Brain Balance is then required to provide the franchisee with the disclosure document. This document must also include a clear explanation that the proposed changes to the franchise agreement are voluntary, ensuring the franchisee understands they are not obligated to accept the modifications.
Furthermore, the 2025 Brain Balance FDD states that the California Department of Financial Protection and Innovation's registration of the franchise offering does not constitute an endorsement. The California Addendum included in the FDD also stipulates that the California Franchise Investment Law requires that a copy of all proposed agreements relating to the sale of the franchise be delivered together with the disclosure document.