How long does Brain Balance have to exercise its right to purchase a Brain Balance franchise after receiving an offer?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
3.05. In the event FRANCHISEE leases office space for the Franchised Business, such lease shall contain a conditional assignment clause, substantially similar to the template provided in Exhibit 5, that shall provide that upon the expiration or sooner termination of this Agreement, for any reason contained herein, the FRANCHISOR or its Affiliates shall have the option, exercisable within thirty (30) days after said expiration or termination, to assume the obligations of the lease, to replace FRANCHISEE and enter into possession under said lease or at any time prior thereto or thereafter to assign or reassign the lease to a third party. In connection therewith, FRANCHISEE shall execute a Conditional Assignment of Lease in the form attached hereto as Exhibit 5 (the "Assignment") pursuant to which Assignment FRANCHISEE has assigned to FRANCHISOR all its right, title, and interest in the lease for the Franchised Business. FRANCHISEE acknowledges that such Assignment is freely assignable by FRANCHISOR to any other person or entity, including any person or entity that may acquire the right to operate a Brain Balance® business in and from said office location or otherwise within the Territory.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, if a franchisee leases office space for their Brain Balance center, the lease must include a conditional assignment clause. This clause allows Brain Balance, or its affiliates, the option to assume the lease obligations if the franchise agreement expires or terminates.
Brain Balance has thirty (30) days after the expiration or termination of the franchise agreement to exercise this option. Within this timeframe, Brain Balance can choose to take over the lease, replace the franchisee, and take possession of the property. They can also assign or reassign the lease to a third party at any point before or after taking possession.
This clause is important for prospective Brain Balance franchisees to understand, as it gives Brain Balance significant control over the leased location if the franchise agreement ends. Franchisees should carefully review the conditional assignment clause in their lease agreement and understand the implications of this provision.