What is the geographic area called within which a Brain Balance Franchised Business must be operated?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
r, although you must have a standard Center established before we will consider permitting you to open a Satellite Center.
You will receive an exclusive area that consists of the geographic area within which your Franchised Business must be operated. We will not establish or operate, or franchise any entity to establish or operate, a Brain Balance® Center within a certain radius of your Center (the "Territory"). You and we determine the exclusive area. The radius may be smaller, if, for example, your approved location is in or near a metropolitan area or a densely populated area. This Territory is conditional on a certain sales volume, market penetration, or other similar condition as follows: (i) beginning in the first month following the date your Center opened or at the tenth month following the date of your Franchise Agreement if you have not yet opened, your minimum monthly royalty will be at least $1,000; (ii) your gross sales, meaning total sales excluding sales tax and any refunds, must equal at least $400,000 for each twelve (12) month period following the third anniversary of the Franchise Agreement date; and (iii) if you are a transferee of a BBF Franchise Agreement, your gross sales must equal at least $400,000 for each twelve (12) month period following the second anniversary of the date the Franchise Agreement was transferred to you. If you fail to meet this requirement, we have the right to terminate the Franchise Agreement. Other than as stated, there are no circumstances that would permit us to modify your territorial rights.
The Territory granted is for a specified area, which may be delineated by boundary streets, highways and other physical boundaries, zip codes, county lines, and/or by governmental lines. You have no options, rights of first refusal, or similar rights to acquire additional franchises within your Territory or contiguous territories under the Franchise Agreement. If you wish to acquire an additional franchise, you must sign another Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 47–49)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the geographic area within which a franchisee must operate their Brain Balance center is called the "Territory." Brain Balance grants franchisees the right to operate a center at a specific, approved location and provides an exclusive area around that center. This means Brain Balance will not establish or franchise another entity to operate a Brain Balance center within a certain radius of the franchisee's center. The size of this radius is determined by Brain Balance and the franchisee and can vary depending on factors like population density. The territory may be delineated by boundary streets, highways and other physical boundaries, zip codes, county lines, and/or by governmental lines.
However, this exclusive territory is conditional. To maintain exclusivity, a Brain Balance franchisee must meet certain sales volume and market penetration requirements. Specifically, the minimum monthly royalty must be at least $1,000 beginning in the month following the center's opening (or the tenth month after signing the Franchise Agreement if the center hasn't opened yet). Additionally, gross sales must equal at least $400,000 for each 12-month period following the third anniversary of the Franchise Agreement date (or the second anniversary if the franchisee is a transferee). Failure to meet these requirements gives Brain Balance the right to terminate the Franchise Agreement.
It is important to note that even within the Territory, Brain Balance retains certain rights. They can market and sell products and services through alternative channels of distribution, such as the internet or mail order. Also, other Brain Balance franchises can solicit and accept customers from within a franchisee's Territory without paying compensation. The franchisee, however, is restricted from soliciting customers outside their Territory and from using unapproved channels of distribution. Brain Balance also intends to offer software products in Brain Balance centers using the Marks as soon 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.
Prospective franchisees should carefully consider these territorial terms, including the sales requirements and the exceptions that allow Brain Balance to operate and market within the Territory through other channels. Understanding these conditions is crucial for assessing the potential success and profitability of a Brain Balance franchise.