What is the Brain Balance franchisee's obligation regarding the operation of the Business?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE or any third parties to which it would not otherwise be subject and assumes no liability or obligations to FRANCHISEE or any third party by reason of any neglect, delay, or denial of any approval requested hereunder.
10. ADDITIONAL OBLIGATIONS OF FRANCHISEE
- 10.01. FRANCHISEE shall faithfully abide by the terms of this Agreement and devote his/her full time and efforts to the promotion and success of the Franchised Business. In the event, following the opening of the Franchised Business, FRANCHISEE desires to operate a business other than the Franchised Business, FRANCHISEE agrees to obtain COMPANY's consent prior to taking any steps in connection with such proposed business, which consent may be refused for any reason or no reason.
- 10.02. FRANCHISEE shall not harm, misuse, or bring into disrepute the name or character of "BBF," "Brain Balance®," "Brain Balance Program,®" or the Marks or any other trade name, trademark, service mark, service name, logo, or copyright of COMPANY or COMPANY's business or the business of any franchisee of COMPANY.
- 10.03. 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.
- 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.
- 10.05. FRANCHISEE shall maintain the standard practices and image developed by COMPANY as the same may be changed from time to time by COMPANY, in order to maintain uniformity with other franchisees utilizing the Marks, and shall use only those standard methodologies, protocols, forms, stationery, and printed material of a style uniformly prescribed by COMPANY for its franchisees and of a quality that meets the standards uniformly prescribed by COMPANY.
- 10.06. FRANCHISEE shall conduct continuing local advertising in form, content, and media approved by COMPANY in a minimum amount set forth in Section 6.07, depending upon location and demographics, and retain evidence of such expenditures for submission to COMPANY upon request.
- 10.07. FRANCHISEE shall utilize a bookkeeping service designated by COMPANY for the first six (6) months of FRANCHISEE's operation of the Franchised Business. In COMPANY's sole discretion, FRANCHISEE may use an alternate bookkeeping service approved in writing by COMPANY.
- 10.08. FRANCHISEE shall not charge fees for services to its clients other than as permitted by law.
- 10.09. FRANCHISEE shall not, directly or indirectly, operate, be associated with, or enter into any sub-franchise or branch office arrangement for the operation of the Franchised Business without COMPANY's prior written consent.
- 10.10. FRANCHISEE shall conduct the Franchised Business in accordance with federal law and pursuant to the law and regulations of the state and locality in which it is located.
- 10.11. FRANCHISEE shall keep the Franchised Business open and in normal operation as BBF may specify in the Manual or otherwise in writing. FRANCHISEE shall maintain, at all times, a full-time staff of no less than a Program Director, and an appropriate number of Program Coaches, who may be part-time, as required to deliver the services as we require. In addition, if FRANCHISEE does not contract with a Call Center, FRANCHISEE must engage the services of a full-time employee whose sole responsibility will be to respond to inbound inquiries for Program services. At the discretion of COMPANY, FRANCHISEE may work in the Center in one of the above positions but if they do not they must appropriately train individuals to fill each role. After Soft Opening, FRANCHISEE shall be responsible, at their own expense, for training any new staff who are engaged to work at FRANCHISEE's Center. FRANCHISEE must send a new Program Director to the next regularly scheduled Initial Training session for which FRANCHISEE will be charged $300.
- 10.12. FRANCHISEE shall not sell any assets other than in the ordinary course of business or, if a corporation, shall not merge or consolidate with another entity, reorganize, or amend its corporate charter nor shall it permit its officers, directors, shareholders, or members to assign or transfer shares of stock, except in strict accordance with the provisions of this Agreement.
- 10.13. FRANCHISEE shall, if requested by COMPANY, consent to the incorporation of, or the filing of a trade name certificate by other franchisees, where the corporate or trade name includes the words "Brain Balance®" or "Brain Balance Program®" followed by a suitable descriptive title and shall cooperate and execute all papers and documents reasonably required to effect the same.
- 10.14. FRANCHISEE shall not cause the name of any individual, employee, officer, or other person, with respect to any printed matter or advertising in any form, whether print, electronic media, or otherwise, in connection with the Business, (i) to appear without being accompanied by the words "Brain Balance®" or "Brain Balance Program®," (ii) to appear more than once, (iii) to be printed larger than one agate line in newspaper and magazine advertisements and two agate lines in other advertising or stationery (except on a business card), and (iv) to be printed larger or bolder than the words "Brain Balance®" or "Brain Balance Program.®"
- 10.15.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees have several obligations regarding the operation of their business. Franchisees must adhere to the terms of the Franchise Agreement and dedicate their full time and effort to promoting the success of the Brain Balance business. If a franchisee wishes to operate another business after opening their Brain Balance center, they must obtain the company's consent, which Brain Balance can refuse for any reason.
Brain Balance franchisees must operate their centers in a lawful and ethical manner, as detailed in the Operations Manual, from a self-contained space in a retail building within their designated territory. They are responsible for obtaining all necessary permits and business licenses and complying with all premises regulatory requirements. The franchisee needs to get Brain Balance's written approval of the lease, sign it within 120 days of the Franchise Agreement's execution, and provide a copy to Brain Balance within ten days of signing. The lease must allow assignment to Brain Balance and not impose obligations on Brain Balance. The franchisee must open the center within nine months of the agreement date.
Furthermore, franchisees must pay all bills, obligations, and taxes related to the business on time and cannot create expenses chargeable to Brain Balance without prior written approval. They must also follow Brain Balance's written instructions regarding the appearance of the Brain Balance trademarks in any form of media and can only use the Brain Balance name and marks for operating an authorized Brain Balance Center. All permanent staff must sign a Confidentiality, Non-Solicitation, and Non-Compete Agreement. The franchisee or its principal must also complete the Initial Training Program.
Finally, the franchisee's proposed center location, layout, equipment, printed materials, and advertising must comply with the Operations Manual and receive Brain Balance's prior written consent. Franchisees must continuously operate the Franchised Business according to all applicable laws, rules, and regulations. Franchisees must complete each pre-opening checklist item specified in the Operations Manual before Brain Balance sends a representative to finalize training and assist in the pre-opening of its Center. Before the actual opening of its Center and initiation of the Brain Balance Program® with respect to any student, the franchisee will obtain the express written consent of Brain Balance. Franchisees must prominently display signage approved by Brain Balance to indicate that FRANCHISEE's Center is an independently owned and operated location within the Brain Balance Achievement Center system.