Is a Brain Balance franchisee allowed to assign or transfer the agreement without Brain Balance's consent?

According to the 2025 Brain Balance Franchise Disclosure Document, franchisees face restrictions on transferring ownership interests. Specifically, if the franchisee is a corporation, they cannot allow officers, directors, shareholders, or members to assign or transfer shares of stock, except in strict accordance with the provisions outlined in the franchise agreement. This indicates that any transfer of ownership or equity interests is subject to the terms and conditions specified within the agreement.

This provision is designed to ensure that Brain Balance maintains control over who its franchisees are and that any changes in ownership align with the company's standards and requirements. It protects the brand by preventing unauthorized transfers that could potentially introduce individuals or entities that do not meet Brain Balance's criteria.

For a prospective franchisee, this means that exiting the business or changing the ownership structure will require careful adherence to the franchise agreement. It is essential to thoroughly understand the conditions under which transfers are permitted and to obtain the necessary approvals from Brain Balance to avoid violating the agreement. This also applies to internal changes within a corporate franchisee, such as changes in shareholders or directors.

It is important for potential franchisees to discuss these transfer provisions with Brain Balance during their due diligence process to fully understand the implications and requirements. Understanding these restrictions upfront can help franchisees plan for future business transitions or changes in ownership structure while remaining compliant with the franchise agreement.