Are other Brain Balance franchisees required to pay compensation for soliciting or accepting customers from within another franchisee's territory?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
as they have been developed by BBF that will be designed to provide interactive components of the Brain Balance Program® for use by customers at home.
Other franchises may solicit and accept customers for their Centers from within the Territory and will not be required to pay compensation for soliciting or accepting customers from within your Territory.
You may not solicit and accept customers from outside your Territory. You may not use other channels of distribution that we have not approved including catalog sales, telemarketing, other direct marketing, or remote coaching other than as we specifically permit. You will not be entitled to establish or maintain an independent Website via the Internet.
Source: Item 12 — TERRITORY (FDD pages 47–49)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, other franchisees are not required to compensate you for soliciting or accepting customers from within your territory. This means that while you are granted an exclusive territory, other Brain Balance franchisees can still market to and serve customers who reside within your designated area without having to pay you any form of compensation. This could potentially lead to competition for customers within your territory from other franchisees in the Brain Balance system.
Brain Balance also retains the right to market and sell services within your territory through alternative channels of distribution, and they are not required to compensate you for soliciting or accepting services from inside your territory. This could include offering products or services under different trademarks than the ones you use as a franchisee.
This aspect of the franchise agreement highlights the importance of effective marketing and customer retention strategies for Brain Balance franchisees. While you have an exclusive territory, the lack of protection from other franchisees and the franchisor soliciting customers within your area means you must actively work to attract and retain clients. Prospective franchisees should consider the potential impact of this open competition on their business and revenue projections.