What obligations related to the Brain Balance franchise are expressly prohibited from being imposed on 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 the 2025 Brain Balance Franchise Disclosure Document, the lease for the franchisee's center must explicitly state that no obligations are imposed on or granted against Brain Balance. This requirement ensures that Brain Balance is not held responsible for the franchisee's lease obligations or any liabilities arising from the lease agreement.
This provision protects Brain Balance from potential financial or legal risks associated with the franchisee's property lease. By requiring this clause, Brain Balance avoids being entangled in lease disputes or being held liable for the franchisee's failure to meet lease obligations. This is a fairly standard practice in franchising, as franchisors generally want to maintain a clear separation of financial and legal responsibilities between themselves and their franchisees.
For a prospective Brain Balance franchisee, this means ensuring that the lease agreement for their center location includes the necessary language protecting Brain Balance. Franchisees should work closely with their legal counsel and the franchisor to verify that the lease complies with this requirement. Failure to include this provision could potentially delay lease approval or create future liabilities for the franchisee.