Does the Brain Balance franchise agreement provide for renewal or extension of the franchise term?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
ble lists certain important provisions of the Franchise and related agreements. You should read these provisions in the agreements attached to this Disclosure Document.**
| Provision | Section in Franchise Agreement (or Satellite Franchise Agreement, if different) | Summary | |
|---|---|---|---|
| a. | Term of the Franchise | 4.01 | 10 years |
| b. | Renewal or Extension of the Term | 4.02 | The Franchise Agreement may be extended for an additional term of 5 years unless you give written notice at least 3 months but not more than 6 months prior to expiration of the current term. |
| c. | Requirements for You to Renew or Extend | 4.02 | Execute the current form of the Franchise Agreement and pay a |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 54–61)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the franchise agreement may be extended for an additional term of 5 years. The initial term of the Franchise Agreement is 10 years, as detailed in Section 4.01.
To renew the Brain Balance franchise, a franchisee must provide written notice to Brain Balance at least 3 months, but not more than 6 months, prior to the expiration of the current term. Additionally, the franchisee is required to execute the current form of the Franchise Agreement, which may contain materially different terms and conditions than the original agreement.
The franchisee must also pay a renewal fee of $10,000 and be re-approved by Brain Balance. This means that the renewal is not automatic and is subject to Brain Balance's approval, and the terms of the renewed agreement could be different from the original. This is a fairly standard renewal process in franchising, although the specific fees and conditions can vary significantly between different franchise systems.