What obligations related to the Brain Balance franchise are expressly prohibited from being granted against Brain Balance in the lease?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall obtain prior written approval from COMPANY of the lease, sign the lease within 120 days of the execution of this Agreement, and provide a copy of the executed lease to COMPANY within ten (10) days of its execution. The lease shall contain provisions that permit assignment to COMPANY and expressly provide that there are no obligations imposed on or granted against COMPANY.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the lease for the Franchised Business must expressly state that there are no obligations imposed on or granted against Brain Balance. This requirement is in place to protect Brain Balance from any liabilities or responsibilities related to the franchisee's lease agreement.
For a prospective Brain Balance franchisee, this means that when negotiating a lease for their center, they must ensure that the lease agreement includes a provision explicitly stating that Brain Balance has no obligations or liabilities under the lease. This provision needs to be included in the lease to secure Brain Balance's approval of the lease agreement.
This requirement is fairly common in franchising, as franchisors typically want to avoid being held responsible for the debts or obligations of their franchisees. By ensuring that the lease agreement clearly states that Brain Balance has no obligations, the franchisor can protect itself from potential legal or financial issues related to the franchisee's business location.