Does the Brain Balance franchisee consent to electronic retrieval of financial reports by the company?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
gulations of the state and locality in which it is located.
- 10.11. FRANCHISEE shall keep the Franchised Business open and in normal operation as BBF may specify in the Manual or otherwise in writing. FRANCHISEE shall maintain, at all times, a full-time staff of no less than a Center Director and a Program Director, and an appropriate number of Program Coaches, who may be part-time, as required to deliver the services as we require. In addition, if FRANCHISEE does not contract with a Call Center, FRANCHISEE must engage the services of a full-time employee whose sole responsibility will be to respond to inbound inquiries for Program services. At the discretion of COMPANY, FRANCHISEE may work in the Center in one of the above positions but if they do not they must appropriately train individuals to fill each role. After Soft Opening, FRANCHISEE shall be responsible, at their own expense, for training any new staff who are engaged to work at FRANCHISEE's Center. FRANCHISEE must send a new Center Director or Program Director to the next regularly scheduled Initial Training session for which FRANCHISEE will be charged $300.
- 10.12. FRANCHISEE, shall not sell any assets other than in the ordinary course of business or, if a corporation, shall not merge or consolidate with another entity, reorganize, or amend its corporate charter nor shall it permit its officers, directors, shareholders, or members to assign or transfer shares of stock, except in strict accordance with the provisions of this Agreement.
- 10.13. FRANCHISEE shall, if requested by COMPANY, consent to the incorporation of, or the filing of a trade name certificate by other franchisees, where the corporate or trade name includes the words "Brain Balance®" or "Brain Balance Program®" followed by a suitable descriptive title and shall cooperate and execute all papers and documents reasonably required to effect the same.
- 10.14. FRANCHISEE shall not cause the name of any individual, employee, officer, or other person, with respect to any printed matter or advertising in any form, whether print, electronic media, or otherwise, in connection with the Business, (i) to appear without being accompanied by the words "Brain Balance®" or "Brain Balance Program®," (ii) to appear more than once, (iii) to be printed larger than one agate line in newspaper and magazi
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, it is not clear whether Brain Balance franchisees must consent to the electronic retrieval of their financial reports by the company. While the document outlines various obligations and restrictions regarding the franchisee's operation of the business, marketing, and use of the Brain Balance name and trademarks, it does not explicitly address the electronic submission or retrieval of financial data.
However, the FDD does state that franchisees must adhere to the standards and procedures outlined in the Brain Balance operations manual. It also states that franchisees must provide information and materials that the company periodically requests concerning the franchisee's center. It is possible that the operations manual or other agreements require franchisees to submit financial reports electronically.
A prospective Brain Balance franchisee should clarify with the franchisor whether they are required to submit financial reports electronically and what systems or software they would need to use. Understanding the franchisor's requirements for financial reporting is essential for managing the administrative aspects of the franchise and ensuring compliance with the franchise agreement.