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What are the consequences if Brain Balance sends a representative to assist with pre-opening before the franchisee completes the pre-opening checklist items?

Brain_Balance Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 14.03. FRANCHISEE agrees that prior to COMPANY sending a representative to finalize training and assisting FRANCHISEE in the pre-opening of its Center, FRANCHISEE shall have completed each pre-opening checklist item specified in the Operations Manual. FRANCHISEE agrees that if COMPANY sends a representative to assist with pre-opening of a Center in violation of the foregoing requirement, such violation will constitute a default under Section 17.02 hereunder, and FRANCHISEE will be responsible for any and all expenses incurred by COMPANY in connection therewith.

Source: Item 22 — CONTRACTS (FDD pages 70–72)

What This Means (2025 FDD)

According to Brain Balance's 2025 Franchise Disclosure Document, franchisees must complete all pre-opening checklist items specified in the Operations Manual before Brain Balance sends a representative to assist with pre-opening. If Brain Balance sends a representative to assist with pre-opening before the franchisee completes the required checklist items, the franchisee will be in default under Section 17.02 of the agreement.

This means that the franchisee will be responsible for any and all expenses incurred by Brain Balance in connection with sending the representative prematurely. The FDD does not specify what these expenses might include, but they could encompass travel, lodging, wages, and other costs associated with the representative's time and effort.

This provision underscores the importance of franchisees adhering to the pre-opening checklist and ensuring all requirements are met before requesting assistance from Brain Balance. It protects Brain Balance from incurring unnecessary expenses due to a franchisee's lack of preparation and provides an incentive for franchisees to diligently follow the established procedures. Prospective franchisees should carefully review the Operations Manual to understand the pre-opening checklist items and their responsibilities in completing them.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.