Is a Brain Balance franchisee required to pay all taxes of the Franchised Business?
Brain_Balance Franchise · 2025 FDDAnswer 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 responsible for paying all taxes associated with their franchised business. This includes federal, state, and local taxes, as well as any other expenses or obligations that arise. This obligation is part of the franchisee's broader responsibility to manage the financial aspects of their Brain Balance center.
This requirement means that prospective Brain Balance franchisees must factor in all applicable taxes when budgeting and forecasting the financial performance of their business. Failing to accurately estimate and pay these taxes can lead to penalties and legal issues. Franchisees should consult with a qualified tax professional to ensure they understand and comply with all relevant tax laws and regulations.
In addition to tax obligations, Brain Balance franchisees are also responsible for paying all other bills and obligations related to the business on a timely basis. They cannot create or incur any expenses chargeable to Brain Balance without prior written approval from the company. This underscores the importance of sound financial management and adherence to the franchisor's policies to maintain a successful and compliant Brain Balance franchise.