If a Brain Balance franchisee renews their agreement, can the terms and conditions be materially different?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
ble lists certain important provisions of the Franchise and related agreements. You should read these provisions in the agreements attached to this Disclosure Document.**
| Provision | Section in Franchise Agreement (or Satellite Franchise Agreement, if different) | Summary | |
|---|---|---|---|
| a. | Term of the Franchise | 4.01 | 10 years |
| b. | Renewal or Extension of the Term | 4.02 | The Franchise Agreement may be extended for an additional term of 5 years unless you give written notice at least 3 months but not more than 6 months prior to expiration of the current term. |
| c. | Requirements for You to Renew or Extend | 4.02 | Execute the current form of the Franchise Agreement and pay a renewal fee equal to $10,000 You may be asked to sign a contract with materially different terms and conditions than your original agreement. Must be re-approved by us. |
| d. | Termination by You |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 54–61)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, the terms and conditions of the franchise agreement may be materially different upon renewal. The standard term of a Brain Balance franchise agreement is 10 years. To renew for an additional 5-year term, a franchisee must provide written notice at least 3 months, but not more than 6 months, before the expiration of the current term.
In order to renew their franchise agreement with Brain Balance, franchisees must execute the current form of the franchise agreement and pay a renewal fee of $10,000. The franchisor also requires that the franchisee be re-approved.
This means that when a Brain Balance franchisee seeks to renew their agreement, they might be presented with a contract that has significantly different terms compared to their original agreement. This is a fairly common practice in franchising, as franchise systems evolve over time. Prospective franchisees should carefully consider this possibility and be prepared to adapt to new terms if they choose to renew their franchise agreement. It would be prudent to discuss potential changes with existing franchisees and the franchisor during the due diligence process.