factual

Is a Brain Balance franchisee required to pay all bills and obligations on a timely basis?

Brain_Balance Franchise · 2025 FDD

Answer from 2025 FDD Document

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 are required to pay all bills and obligations on a timely basis. This includes federal, state, and local expenses, as well as all taxes related to the franchised business. The franchisee is also prohibited from creating or incurring any expenses chargeable to Brain Balance without the company's prior written approval.

This requirement ensures that Brain Balance franchisees maintain good financial standing and do not create financial liabilities that could negatively impact the franchisor. By mandating timely payments, Brain Balance aims to protect its brand reputation and avoid potential legal or financial issues arising from a franchisee's mismanagement of funds.

For a prospective franchisee, this means they must have a solid financial plan and the ability to manage their business finances effectively. Failure to meet these obligations could lead to penalties, legal action, or even termination of the franchise agreement. Franchisees should carefully consider their financial capabilities and ensure they have sufficient resources to cover all expenses and taxes associated with operating a Brain Balance center.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.