Does the Brain Balance Franchise Agreement require that the franchisee's execution of the agreement not violate any other agreements?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
tained space located in a retail building within the Territory in accordance with the terms and intent of this Agreement in a lawful and ethical manner as specified by COMPANY in its Operations Manual. FRANCHISEE shall obtain all permits and business licenses required by law for its Center location and shall comply with all premises regulatory requirements. FRANCHISEE shall obtain prior written approval from COMPANY of the lease, sign the lease within 120 days of the execution of this Agreement, and provide a copy of the executed lease to COMPANY within ten (10) days of its execution. The lease shall contain provisions that permit assignment to COMPANY and expressly provide that there are no obligations imposed on or granted against COMPANY. FRANCHISEE shall open the Center within nine (9) months of the date of this Agreement.
10.04.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Brain Balance franchise agreement includes stipulations that ensure franchisees operate within legal and ethical boundaries, and in accordance with other agreements. Specifically, franchisees must secure all necessary permits and licenses for their Brain Balance center and comply with all regulatory requirements. Furthermore, the lease agreement for the center's location must be pre-approved by Brain Balance and contain provisions that allow assignment to the company without imposing obligations on them.
Additionally, Brain Balance mandates that franchisees pay all their bills, obligations, and taxes related to the franchised business promptly. They are also prohibited from incurring expenses chargeable to Brain Balance without prior written approval. This indicates that franchisees must manage their finances responsibly and transparently, avoiding any actions that could negatively impact Brain Balance's financial interests or reputation.
While the FDD excerpts provided do not explicitly state that the franchisee's execution of the agreement must not violate other agreements, the stipulations mentioned above imply that franchisees must conduct their business in a lawful and ethical manner, which would include honoring existing agreements and obligations. A prospective franchisee should seek clarification from Brain Balance regarding any specific clauses in the franchise agreement that address this issue directly.