What is the minimum time Brain Balance has 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 30 days after the expiration or termination of the franchise agreement to exercise this option.
This means that Brain Balance has the right to take over the franchisee's lease within 30 days of the franchise agreement ending, for any reason. This allows Brain Balance to maintain control over the location and potentially re-franchise it or operate it themselves.
For a prospective franchisee, this clause represents a significant consideration. If the franchise agreement ends, the franchisee could lose their location to Brain Balance. It is important for franchisees to understand the terms of the lease and the conditions under which Brain Balance can exercise its option to assume the lease.