Is a Brain Balance franchisee required to pay all taxes of the Franchised Business on a timely basis?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
10.04. 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 taxes of the franchised business on a timely basis. This obligation extends to all bills and obligations, including federal, state, and local expenses.
This requirement ensures that Brain Balance franchisees maintain good financial standing and comply with all applicable tax laws. Failing to pay taxes on time could result in penalties, legal issues, and damage to the reputation of both the franchisee and the Brain Balance brand.
In addition to tax obligations, Brain Balance franchisees must also pay all other bills and obligations related to the business in a timely manner. They are also prohibited from creating or incurring any expenses chargeable to Brain Balance without prior written approval. This provision protects Brain Balance from unauthorized financial liabilities incurred by its franchisees.