What happens if a Brain Balance franchisee does not maintain the required staff?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
gulations 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 Center Director and 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 Center Director or 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.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, franchisees must maintain a full-time staff consisting of a Center Director and a Program Director, along with an appropriate number of part-time Program Coaches to deliver the required services. Additionally, if a franchisee does not contract with a call center, they must employ a full-time employee dedicated to handling inbound inquiries about program services.
If a Brain Balance franchisee fails to maintain the required staffing levels, it would constitute a breach of the franchise agreement. Item 17.03 outlines that upon the occurrence of an Event of Default, Brain Balance, at its option, may terminate the agreement on five (5) days' written notice without a right to cure. An Event of Default is defined in Item 17.02, but the specific staffing requirements are not explicitly listed as an Event of Default in the provided excerpts.
However, the franchisor retains the right to cease providing services and benefits until the franchisee complies with all requirements, including staffing. The franchisee is responsible for covering the costs of training any new staff after the soft opening of their center. If a new Center Director or Program Director is hired, the franchisee must send them to the next scheduled Initial Training session, incurring a $300 fee. Therefore, maintaining the required staff is critical for a Brain Balance franchisee to avoid potential penalties, termination of the agreement, or interruption of franchisor support.