Who are the intended third-party beneficiaries of the Brain Balance agreement?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The term Company shall include any subsidiaries or affiliates of Company, Company's franchisor, and its franchisees. BBF and BBI are intended third-party beneficiaries of this Agreement and shall be entitled to enforce its provisions to the fullest extent permitted by law.
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, BBF and BBI are the intended third-party beneficiaries of the franchise agreement. This means that these entities have specific rights under the agreement and can enforce its provisions to the fullest extent permitted by law.
For a prospective Brain Balance franchisee, this clause indicates that the agreement extends beyond just the franchisee and BB Franchising LLC. BBF and BBI, as third-party beneficiaries, have a legal stake in ensuring the franchisee complies with the terms of the agreement. This could involve various aspects of the franchise operation, such as maintaining brand standards, adhering to operational guidelines, and fulfilling financial obligations.
This provision is included to protect the interests of related entities and ensure the consistent application of the franchise agreement across the Brain Balance system. Franchisees should understand that their actions can have legal ramifications not only with the franchisor but also with these identified third parties. It is important for franchisees to fully understand their obligations under the franchise agreement and how those obligations may be enforced by BBF and BBI.