What is the Brain Balance franchisee's obligation regarding licenses or permits required for operation of the Franchised Business?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall operate the Franchised Business from a self-contained space located in a retail building within the Territory in accordance with the terms and intent of this Agreement in a lawful and ethical manner as specified by COMPANY in its Operations Manual. FRANCHISEE shall obtain all permits and business licenses required by law for its Center location and shall comply with all premises regulatory requirements. FRANCHISEE shall obtain prior written approval from COMPANY of the lease, sign the lease within 120 days of the execution of this Agreement, and provide a copy of the executed lease to COMPANY within ten (10) days of its execution. The lease shall contain provisions that permit assignment to COMPANY and expressly provide that there are no obligations imposed on or granted against COMPANY. FRANCHISEE shall open the Center within nine (9) months of the date of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the franchisee is responsible for securing all necessary permits and business licenses required by law for the Brain Balance center's location. The franchisee must also ensure compliance with all regulatory requirements applicable to the premises. This obligation is part of the broader requirement that the franchisee operate the Brain Balance business in a lawful and ethical manner, as specified in the Operations Manual.
In addition to securing the necessary permits and licenses, the Brain Balance franchisee must obtain prior written approval from Brain Balance for the lease of the premises. The franchisee is required to sign the lease within 120 days of the execution of the Franchise Agreement and provide a copy of the executed lease to Brain Balance within ten days of its execution. The lease terms must allow for assignment to Brain Balance and explicitly state that there are no obligations imposed on or granted against Brain Balance.
Furthermore, the franchisee is expected to open the Brain Balance center within nine months from the date of the Franchise Agreement. This timeline underscores the importance of promptly addressing all legal and regulatory requirements to avoid delays in commencing operations. Failing to meet these obligations could potentially lead to a breach of the Franchise Agreement.
Overall, the responsibility for obtaining permits and licenses, along with lease approval requirements, is a standard practice in franchising. It ensures that the franchisee operates legally and ethically while protecting the franchisor's interests by maintaining control over site selection and compliance.