Must a Brain Balance franchisee operate the Franchised Business in a lawful manner?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
10.03. FRANCHISEE shall operate the Franchised Business from a self-contained 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. 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.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees must operate their franchised business in a lawful and ethical manner. Specifically, the franchisee must adhere to the terms outlined in the franchise agreement and follow the guidelines specified by Brain Balance in its Operations Manual. This includes obtaining all necessary permits and business licenses required by law for the center's location and complying with all premises regulatory requirements.
This requirement ensures that all Brain Balance centers maintain a standard of legal and ethical conduct, protecting the brand's reputation and ensuring consistent service delivery. Franchisees are also responsible for paying all bills, obligations, federal, state, and local taxes related to the business in a timely manner. They cannot create or incur any expenses chargeable to Brain Balance without prior written approval, further emphasizing the need for lawful and transparent financial operations.
Failure to operate the Brain Balance franchise in compliance with laws and ethical standards could lead to penalties, legal issues, and potential termination of the franchise agreement. Therefore, prospective franchisees should carefully review the Operations Manual and understand all legal and ethical obligations before investing in a Brain Balance franchise. This ensures they are prepared to meet these requirements and maintain a successful and compliant business.