What is Brain Balance's policy on a franchisee assigning or transferring rights in the Franchised Business?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
16.02. If FRANCHISEE is also transferring its rights in the Standard BB Center to the same assignee, FRANCHISEE may assign or transfer this Agreement, pursuant to the terms of this Section 16. FRANCHISEE may not assign or transfer this Agreement or any rights or interests herein or in the Franchised Business or any assets of the Franchised Business other than in the ordinary course of business or a partnership interest therein, or if FRANCHISEE is a corporation or an LLC, all or part of the equity of the corporation or LLC, except upon COMPANY's prior written consent, which will not be unreasonably withheld. FRANCHISEE must first obtain a bona fide, signed, unconditional, and firm written offer from a responsible and fully identified purchaser and shall submit a complete copy of such offer to COMPANY together with COMPANY's current application for franchise completed by the prospective purchaser. Such of
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, a franchisee may assign or transfer their agreement if they are also transferring their rights in the Standard BB Center to the same assignee, and it must be done according to the terms in Section 16 of the agreement. Otherwise, a Brain Balance franchisee cannot assign or transfer the agreement, any rights or interests in the franchised business, or any assets from the business outside of the ordinary course of business, unless they have Brain Balance's prior written consent, which will not be unreasonably withheld.
To get approval for a transfer, the Brain Balance franchisee must first get a bona fide, signed, unconditional, and firm written offer from a responsible and fully identified purchaser. Then, the franchisee must submit a complete copy of the offer to Brain Balance, along with Brain Balance's current application for a franchise completed by the prospective purchaser.
These stipulations are typical in franchising, as they allow Brain Balance to maintain control over who operates their branded centers and ensures that any new franchisee meets their standards. The requirement for a written offer and application helps Brain Balance assess the buyer's financial stability and operational capabilities before approving the transfer.