Is a Brain Balance franchisee required to maintain and continue to operate its Standard BB Center?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.03. FRANCHISEE acknowledges that the Franchise granted hereunder is limited to the establishment and operation of the Franchised Business in a single location within the Territory and requires FRANCHISEE to maintain and continue to operate its Standard BB Center. FRANCHISEE may not operate the Franchised Business from an additional location or outside of the Territory unless a separate franchise agreement is signed by the parties and an additional Initial Franchise Fee (as hereinafter defined) is paid by FRANCHISEE to COMPANY. If FRANCHISEE stops operating or loses its right to operate the Standard BB Center,
FRANCHISEE must either obtain FRANCHISOR's approval to convert the Franchised Business to a standard Brain Balance® Center, which will not be unreasonably withheld but will require FRANCHISEE to sign a franchise agreement for a standard Center and pay the difference between the initial franchise fee paid by FRANCHISEE under this Agreement and the then-current initial franchise fee for a Standard BB Center, or must stop operating the Franchised Business.
- (l) FRANCHISEE abandons, fails to renew, or otherwise loses the right to operate or stops operating the Standard Brain Balance Center and fails to convert the Franchised Business into a standard Brain Balance Center within a period of 30 days from the date of non-operation of the Standard Brain Balance Center.
- 17.03. (a) Upon the occurrence of an Event of Default, COMPANY, at its option, may terminate this Agreement on five (5) days' written notice (or a notice for a longer period of time as may be required by the law of the jurisdiction in which FRANCHISEE's Center is located) without a right to cure, and this Agreement, together with the Franchise granted hereunder, shall thereupon expire.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees are required to maintain and continue to operate their Standard BB Center. The franchise agreement stipulates that the franchise is limited to a single location within the designated territory, and the franchisee must maintain and continuously operate this Standard BB Center.
If a franchisee stops operating or loses the right to operate the Standard BB Center, they have two options. They can seek approval from Brain Balance to convert the franchised business into a standard Brain Balance Center. This conversion is subject to signing a new franchise agreement for a standard center and paying the difference between the initial franchise fee already paid and the current initial franchise fee for a Standard BB Center. Alternatively, the franchisee must cease operating the franchised business altogether.
Furthermore, the FDD states that if a franchisee abandons, fails to renew, or otherwise loses the right to operate or stops operating the Standard Brain Balance Center, and fails to convert the franchised business into a standard Brain Balance Center within 30 days of non-operation, it constitutes a breach of the franchise agreement. This breach can lead to termination of the agreement by Brain Balance, typically with a five-day written notice, without granting an opportunity to cure the breach.