What recourse does a Brain Balance franchisee have if they are unable to maintain a required license or permit?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall operate the Franchised Business from a self-contained space located in a retail building within the Territory in accordance with the terms and intent of this Agreement in a lawful and ethical manner as specified by COMPANY in its Operations Manual. FRANCHISEE shall obtain all permits and business licenses required by law for its Center location and shall comply with all premises regulatory requirements.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees are required to obtain all permits and business licenses required by law for their center location and comply with all premises regulatory requirements. The FDD does not explicitly state the recourse a franchisee has if they are unable to maintain a required license or permit after opening their Brain Balance center.
However, the agreement stipulates that franchisees must operate the franchised business in a lawful manner as specified by Brain Balance in its Operations Manual. Failure to comply with applicable laws, rules, and regulations is considered a failure to continuously operate the franchised business, which can negatively affect Brain Balance's franchise network.
Since the FDD does not specify the consequences of failing to maintain necessary licenses and permits, prospective franchisees should directly ask Brain Balance about the specific procedures, potential penalties, and options for recourse in such situations. Understanding the franchisor's expectations and support systems in case of licensing issues is crucial for assessing the risks associated with the franchise.