What documents outline the principal obligations of a Brain Balance franchisee?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
ions in these agreements and in other items of this Disclosure Document.**
| Obligation | Section in Agreement | Disclosure Document Item | |----------------------------------------------------------------|---------------------------------------------|-----------------------------| | a. Site Selection and Acquisitions/Lease | Sections 3 & 10 | Items 7, 8 & 11 | | b. Pre-opening Purchases/Leases | Section 14.03 | Items 5, 7, 8 & 11 | | c. Site-Development and Other Pre | Sections 9.01 & 14.03 | Items 8 & 11 | | Opening Requirements | | | | d. Initial Training and Ongoing Training | Sections 9 & 10 | Item 11 | | e. Opening | Sections 9, 10 & 14 | Item 11 | | f. Fees | Sections 5 & 6 Application License Agreement: Section 3 | Items 5 & 6 | | g. Compliance with Standards and | Sections 9.01(b) & (d), | Items 8, | | Policies/Operations Manual | 10, 13 & 14 | 11, 14 & 15 | | h. Trademarks and Proprietary | Sections 10, 12 & 13 | Items 13 & 14 | | Information | | | | i. Restrictions on Products/Services | Sections 1 & 10 | Items 8 & | | Offered | | 16 | | j. Warranty and Customer Service | Section 10 | Item 7 | | Requirements | | | | k. Territorial Development and Sales | Sections 13 & 17 | Items 5, 12 & 17 | | Quota | | | | l. Ongoing Product/Service Purchases | Section 10.18 | Item 8 | | m. Maintenance, Appearance, and | Sections 10.05 and | Item 7 | | Remodeling Requirements | 13.01 | | | n. Insurance | Sections 11 and 19 | Items 7 & 8 | | o. Advertising | Sections 3, 6.02, 10 | Items 6, 7, 8 & 11 |
| Obligation | Section in Agreement | Disclosure | ||
|---|---|---|---|---|
| Document Item | ||||
| p. Indemnification | Section 19 Application License Agreement: Section 9 | Item 6 | ||
| q. Owner's | Sections 10.01, 10.04, | Item 15 | ||
| Participation/Management/Staffing | 10.09, 14.04 & 14.06 | |||
| r. Records/Reports | Section 7 | Items 6 & 17 | ||
| s. Inspections/Audit | Sections 7, 11.02 & 17.02 | Items 6 & 11 | ||
| t. Transfer and Assignment | Sections 10.10, 16, 17.02 & 17.04 Application License Agreement: Section 13(b) | Items 6 & 17 | ||
| u. Renewal | Section 4 Application License Agreement: Section 5 | Items 6 & 17 | ||
| v. Post-termination Obligations | Sections 10.17, 10.18, 12.04, 16.04, 17 & 18.04 Application License Agreement: Section 6 | Item 17 | ||
| w. Non-competition Covenants | Section 18 Application License Agreement: Section 1(b) | Item 17 | ||
| x. Dispute Resolution | Sections 20 & 21 Application License Agreement: Section 19 | Item 17 | All sections are the same in the Standard Franchise Agreement and the Satellite Franchise Agreement. |
ITEM 10 FINANCING
The Franchisor does not offer direct or indirect financing.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 34–36)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, Item 9 provides a table that lists the principal obligations of a franchisee. This table serves as a roadmap, directing franchisees to specific sections within the Franchise Agreement and other items within the Disclosure Document for more detailed information. The listed obligations cover a wide spectrum of responsibilities, from site selection and development to adherence to brand standards and legal compliance.
Specifically, the table in Item 9 cross-references each obligation with its corresponding section in the Franchise Agreement and relevant items in the Disclosure Document. For example, obligations related to 'Site Selection and Acquisitions/Lease' are detailed in Sections 3 & 10 of the agreement and Items 7, 8, & 11 of the FDD. Similarly, 'Fees' are addressed in Sections 5 & 6 of the Franchise Agreement and Section 3 of the Application License Agreement, as well as Items 5 & 6 of the FDD. This structure allows franchisees to quickly locate the governing terms for each of their responsibilities.
Other obligations include pre-opening purchases/leases, initial and ongoing training, opening procedures, compliance with operational standards, trademark usage, restrictions on products/services, warranty and customer service, territorial development, ongoing purchases, maintenance, insurance, advertising, indemnification, owner participation, record keeping, inspections, transfer and assignment, renewal, post-termination obligations, non-competition covenants, and dispute resolution. Each of these obligations is linked to specific sections in the agreements and relevant items in the FDD, providing a comprehensive overview of what is expected of a Brain Balance franchisee. Item 9 also states that all sections are the same in the Standard Franchise Agreement and the Satellite Franchise Agreement.