Can a Brain Balance franchisee enter into any sub-franchise arrangement without the company's consent?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
e prior written consent of COMPANY.
- 2.02. FRANCHISEE agrees to obtain COMPANY's prior written approval for all content used by FRANCHISEE on FRANCHISEE's link to COMPANY's Web site.
3. TERRITORY
- 3.01. FRANCHISEE is granted an exclusive right to establish a single location for the Franchised Business in the city, town, or village identified on Schedule I that is located within the Territory. FRANCHISEE may not without COMPANY's prior written consent relocate its Center or open additional centers for the Franchised Business within the Territory.
- 3.02. COMPANY agrees that throughout the term of this Agreement and provided that FRANCHISEE is not in default hereunder, COMPANY will neither operate nor franchise others to operate a Brain Balance® Center within the Territory, or within a designated radius of FRANCHISEE'S Brain Balance® Center.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Brain Balance franchisees are not granted the right to sub-franchise. Item 3.01 states that the franchisee is granted an exclusive right to establish a single location within their territory, and they cannot relocate or open additional centers without Brain Balance's prior written consent. This indicates that each franchise agreement is specific to a single location and operator.
Furthermore, Item 3.03 emphasizes that the franchise is limited to a single location within the territory, and operating from an additional location or outside the territory requires a separate franchise agreement and an additional Initial Franchise Fee paid to Brain Balance. This reinforces the restriction against expanding operations without direct approval and investment, which would be necessary for any sub-franchising arrangement.
In general, the FDD does not explicitly use the term "sub-franchise," but the restrictions on territory, location, and the requirement for separate agreements and fees for additional locations strongly imply that franchisees cannot grant rights to third parties to operate Brain Balance centers without the direct involvement and approval of the franchisor. A prospective franchisee should confirm this interpretation with Brain Balance directly to fully understand the scope of their operational rights and limitations.