If a Brain Balance franchisee does not have a location when signing the Franchise Agreement, what must they agree to?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 12 — TERRITORY (FDD pages 47–49)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, if a franchisee does not have a location secured when signing the Franchise Agreement, they must agree to locate their Brain Balance center within a specified distance from a particular intersection at the time of signing. This agreement ensures that Brain Balance can maintain some control over the geographic placement of new centers, even if the franchisee hasn't yet found a specific site.
Once the franchisee identifies a suitable space, they must request approval from Brain Balance and submit a proposed lease. This step allows Brain Balance to assess whether the location meets their criteria, as described in Item 11, which likely covers factors such as visibility, accessibility, and suitability for the Brain Balance program. The franchisee cannot proceed without this approval.
After Brain Balance approves the location and the franchisee signs the lease, Brain Balance will formally identify that specific location as the franchisee's center. This final step solidifies the agreement and officially designates the approved site as the franchisee's Brain Balance center. This process protects both the franchisee and Brain Balance by ensuring that the location meets the brand's standards and strategic goals.