Must a Brain Balance franchisee be re-approved to renew the franchise agreement?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
ble lists certain important provisions of the Franchise and related agreements. You should read these provisions in the agreements attached to this Disclosure Document.**
| Provision | Section in Franchise Agreement (or Satellite Franchise Agreement, if different) | Summary | |
|---|---|---|---|
| a. | Term of the Franchise | 4.01 | 10 years |
| b. | Renewal or Extension of the Term | 4.02 | The Franchise Agreement may be extended for an additional term of 5 years unless you give written notice at least 3 months but not more than 6 months prior to expiration of the current term. |
| c. | Requirements for You to Renew or Extend | 4.02 | Execute the current form of the Franchise Agreement and pay a |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 54–61)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, a franchisee must be re-approved to renew their Franchise Agreement. The initial term of the Franchise Agreement is 10 years, but it can be extended for an additional 5-year term if the franchisee provides written notice at least 3 months, but not more than 6 months, before the current term expires.
To renew the agreement, a Brain Balance franchisee must execute the current form of the Franchise Agreement, which may contain materially different terms and conditions than the original agreement. Additionally, the franchisee must pay a renewal fee of $10,000.
This re-approval requirement means that Brain Balance has the right to deny a renewal if they deem the franchisee is not meeting their standards or if other issues arise. This is a standard practice in franchising, allowing the franchisor to maintain brand consistency and quality across all locations. Prospective franchisees should consider this re-approval process and ensure they maintain a good working relationship with Brain Balance to increase their chances of renewal.