Does Brain Balance grant a franchisee the right to operate a center at a specific location?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
te the above and return this page to BB Franchising LLC, 1320 North Route 59, Unit 110, | Naperville, IL 60563 for their records.
ITEM 12 TERRITORY
We grant you the right to operate a Brain Balance® Center at a specific location. If you do not have a location when you sign the Franchise Agreement, then at the time you sign the Franchise Agreement, you will agree to locate your Center within a specified distance from a particular intersection. When you have identified space suitable for a Center you will request approval for this location from us and submit a proposed lease. Once we have approved the location and you have signed the lease with our approval, we will identify that specific location for your Center.
Except as otherwise stated, the disclosures here regarding territory apply equally whether you are opening a standard Brain Balance® Center or a Satellite Center, 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.
Source: Item 12 — TERRITORY (FDD pages 47–49)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, Brain Balance grants franchisees the right to operate a Brain Balance Center at a specific, approved location. If a franchisee does not have a location selected when signing the Franchise Agreement, they must agree to locate their center within a specified distance from a particular intersection. The franchisee must then seek approval from Brain Balance for their chosen location and submit a proposed lease. Once Brain Balance approves the location and the franchisee signs the lease, that specific location is designated for the Brain Balance Center.
Brain Balance also grants an exclusive territory to its franchisees, defining the geographic area within which the franchised business must operate. 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 radius of this territory is determined by Brain Balance and the franchisee, and it may be smaller in densely populated areas.
However, this exclusive territory is conditional. To maintain exclusivity, a franchisee must meet certain performance standards. Beginning in the first month after opening (or the tenth month after signing the Franchise Agreement if the center is not yet open), the minimum monthly royalty must be at least $1,000. 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. Franchisees must operate from one business location, although satellite centers are permitted to provide intake services and conduct administrative functions at the standard center location. Relocation requires written permission from Brain Balance, payment of a relocation fee, and signing a general release if permitted by state law. Brain Balance can refuse relocation requests.