What is the process a Brain Balance franchisee must follow to obtain consent for assignment or transfer?

According to the 2025 Brain Balance Franchise Disclosure Document, a franchisee is restricted from selling assets outside the normal course of business. If the franchisee is a corporation, they cannot merge, consolidate, reorganize, or amend their corporate charter. Furthermore, the officers, directors, shareholders, or members cannot assign or transfer shares of stock unless they strictly adhere to the terms outlined in the franchise agreement. This indicates that any transfer or assignment of ownership interests is subject to specific conditions and limitations as defined in the agreement.

This provision ensures that Brain Balance maintains control over the ownership and management of its franchise locations. By requiring adherence to the franchise agreement's provisions, Brain Balance can vet potential new owners or shareholders to ensure they meet the brand's standards and have the necessary qualifications. This protects the brand's reputation and the consistency of services provided across all franchise locations.

For a prospective Brain Balance franchisee, this means that exiting the business or transferring ownership may not be a straightforward process. They must carefully review the franchise agreement to understand the specific requirements and restrictions on transfers or assignments. Failure to comply with these provisions could result in a breach of contract and potential legal consequences. It is advisable to seek legal counsel to fully understand the implications of these restrictions before entering into a franchise agreement with Brain Balance.