Can Brain Balance locate a business that a franchisee is prohibited from operating under the Franchise Agreement within the franchisee's Brain Balance territory?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
r services that are the same as or similar to those that you provide at your Brain Balance® Center, or any other system or trademarks or service marks. Additionally, BBF, and its affiliates reserve the right to engage in a business other than a supplemental education service business offering programs for individuals with developmental delays. This business can be located within your Territory and can include a business you are prohibited from operating under the Franchise Agreement.
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- Outside the Territory, to offer, sell, and provide (and to contract with, or license, others to offer, sell, and provide), any products and services of any kind (including Brain Balance® Center services), under the Marks or other marks;
Source: Item 12 — TERRITORY (FDD pages 47–49)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, Brain Balance and its affiliates retain specific rights within a franchisee's territory. Brain Balance can engage in businesses other than supplemental education, even if those businesses are located within a franchisee's territory and are businesses that the franchisee is prohibited from operating under the Franchise Agreement. This means that while a franchisee is restricted from certain business activities, Brain Balance itself is not.
Brain Balance also retains the right to offer and sell products and services, including those related to the Brain Balance Program, through alternative channels of distribution within the franchisee's territory, either under the Brain Balance marks or different trademarks. The FDD specifies that Brain Balance is not obligated to compensate the franchisee for services solicited or accepted from within their territory.
This aspect of the franchise agreement highlights a potential risk for franchisees. While they are granted an exclusive territory for operating a Brain Balance Center, Brain Balance retains considerable freedom to operate other businesses, even competitive ones, within that same territory. Prospective franchisees should carefully consider this when evaluating the potential market and revenue for their Brain Balance center, as Brain Balance's activities could impact their business.