What is a Brain Balance franchisee required to do to request the right to continue to operate the Franchised Business?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
ithin a designated radius of FRANCHISEE'S Brain Balance® Center. FRANCHISEE acknowledges that COMPANY may market to clients located inside of the Territory or advertise inside of the Territory.
- 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. 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.
- 3.04. FRANCHISEE acknowledges that other franchisees and/or affiliates of COMPANY who conduct businesses similar or identical to the Franchised Business under the Marks may market to clients located inside of the Territory or advertise inside of the Territory.
3.05.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
The 2025 Brain Balance Franchise Disclosure Document outlines specific requirements for franchisees who stop operating their Standard Brain Balance Center and wish to continue operating the Franchised Business. According to Item 22, if a franchisee stops operating or loses the right to operate their Standard BB Center, they must take specific actions to maintain their franchise rights.
To continue operating the Franchised Business, a Brain Balance franchisee must either obtain the Franchisor's approval to convert the Franchised Business into a standard Brain Balance Center or cease operations altogether. Approval for conversion will not be unreasonably withheld. However, this conversion requires the franchisee to sign a franchise agreement for a standard center and pay the difference between the initial franchise fee they initially paid and the then-current initial franchise fee for a Standard BB Center.
If the franchisee neither converts the Franchised Business nor obtains approval to convert, they must stop operating the Franchised Business. Furthermore, according to section (l) of Item 22, the franchisee has a 30-day window from the date of non-operation of the Standard Brain Balance Center to convert the Franchised Business into a standard Brain Balance Center. Failure to do so constitutes a breach of contract, potentially leading to termination of the franchise agreement.