Can a Brain Balance franchisee operate a sub-franchise without Brain Balance's written consent?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.03. The Franchise granted herein does not grant FRANCHISEE the right to engage in any business other than the Franchised Business, whether said business is conducted within or without the Territory or under the Marks or under any other name or mark.
2. USE OF NAME
- 2.01. FRANCHISEE is granted the right to use, and FRANCHISEE agrees to use, the words "Brain Balance®" as part of its trade or business name, in the exact manner and style set forth on Schedule I (the "Business Name") and as directed by COMPANY. COMPANY reserves the right to direct a change in the manner of use of the Marks by FRANCHISEE, and FRANCHISEE agrees to comply with such directions. FRANCHISEE shall not use the Marks as part of its corporate or limited liability company name without the prior written consent of COMPANY.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
Based on the 2025 Brain Balance Franchise Disclosure Document, the document does not explicitly address whether a franchisee can operate a sub-franchise. However, the FDD states that the franchisee is granted a franchise for the operation of a Brain Balance Center and does not grant the franchisee the right to engage in any business other than the Franchised Business. Also, the franchisee must get Brain Balance's prior written consent to use the Brain Balance name as part of its corporate or limited liability company name.
Given these restrictions, it is unlikely that a franchisee could operate a sub-franchise without Brain Balance's explicit written consent. The agreement emphasizes that the franchisee's business activities must be limited to the operation of the franchised Brain Balance Center.
To clarify whether sub-franchising is permitted under any circumstances, a prospective franchisee should directly ask Brain Balance about their policy on sub-franchising and whether there are any conditions under which it might be allowed. This information is crucial for understanding the full scope and limitations of the franchise agreement.