Can a Brain Balance franchisee obligate or bind the company in any manner?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
nment 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. FRANCHISEE shall pay on a timely basis all of its bills and obligations; federal, state, and local and other expenses; and all taxes of the Franchised Business. FRANCHISEE shall not create or incur any expenses chargeable to COMPANY without COMPANY's prior written approval.
10.05. FRANCHISEE shall maintain the standard practices and image developed by COMPANY as the same may be changed from time to time by COMPANY, in order to maintain uniformity with other franchisees utilizing the Marks, and shall use only those standard methodologies, protocols, forms, stationery, and printed material of a style uniformly prescribed by COMPANY for its franchisees and of a quality that meets the standards uniformly prescribed by COMPANY.
10.06.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from creating or incurring any expenses chargeable to the company without prior written approval. This restriction ensures that franchisees cannot enter into agreements or make financial commitments that would obligate Brain Balance financially.
Furthermore, the lease agreement for the Brain Balance center must be approved by the company and contain provisions that permit assignment to the company. Critically, the lease must expressly state that there are no obligations imposed on or granted against Brain Balance. This requirement protects Brain Balance from being held responsible for any liabilities or obligations arising from the franchisee's lease agreement.
In general, these stipulations are typical in franchising to maintain brand consistency and protect the franchisor from unforeseen liabilities. A prospective Brain Balance franchisee should understand that they operate independently and bear the financial responsibility for their center, and they cannot make agreements that would bind the franchisor without explicit consent.