Can a Brain Balance franchisee operate a sub-franchise or branch office 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)
According to Brain Balance's 2025 Franchise Disclosure Document, a franchisee is granted the right to establish a single location within a defined territory, but they cannot relocate or open additional centers without Brain Balance's prior written consent. The franchise is limited to operating the business in a single location within the territory. To operate from an additional location or outside the designated territory, a franchisee must sign a separate franchise agreement and pay an additional initial franchise fee to Brain Balance. This policy ensures that each franchise operates within its defined scope and does not encroach upon other franchisees' territories or the brand's overall market strategy.
This restriction is typical in franchising to maintain market control and prevent cannibalization between franchise units. By requiring franchisees to obtain explicit permission and pay additional fees for new locations, Brain Balance retains control over its expansion strategy and protects the investments of its existing franchisees. This also allows Brain Balance to ensure that each new location meets its standards for quality and service.
For a prospective franchisee, this means that expanding beyond the initial territory or opening additional locations requires a significant additional investment and the franchisor's approval. It is important to carefully consider the initial territory's potential and growth opportunities, as expanding beyond it will involve additional costs and may not be guaranteed. Franchisees should discuss their long-term growth plans with Brain Balance during the due diligence process to understand the potential for future expansion and the criteria for obtaining approval.