What information must a Brain Balance franchisee provide to Brain Balance regarding a proposed assignee or transferee?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the excerpts provided do not specify the exact information a Brain Balance franchisee must submit to the franchisor regarding a proposed assignee or transferee. However, the document does state that franchisees cannot transfer shares of stock except in strict accordance with the provisions of the Franchise Agreement. This suggests that the Franchise Agreement contains specific requirements and procedures for any transfer of ownership or control.
Because the FDD excerpts do not detail the required information, prospective franchisees should carefully review the Franchise Agreement itself and any related documents. This will help them understand the specific obligations and procedures for seeking approval of a proposed assignee or transferee.
To gain clarity, a prospective Brain Balance franchisee should ask the franchisor for a comprehensive list of all information and documentation required to be submitted for the approval of a proposed assignee or transferee. This list should include financial statements, background checks, business plans, and any other relevant information the franchisor requires to evaluate the proposed transfer.