Can Brain Balance refuse consent for a franchisee to operate another business for any reason?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
10. ADDITIONAL OBLIGATIONS OF FRANCHISEE
10.01. FRANCHISEE shall faithfully abide by the terms of this Agreement and devote his/her full time and efforts to the promotion and success of the Franchised Business. In the event, following the opening of the Franchised Business, FRANCHISEE desires to operate a business other than the Franchised Business, FRANCHISEE agrees to obtain COMPANY's consent prior to taking any steps in connection with such proposed business, which consent may be refused for any reason or no reason.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees must obtain the company's consent before engaging in any other business after opening their Brain Balance franchise. Brain Balance has the right to refuse this consent for any reason, or for no reason at all.
This requirement is significant for prospective franchisees as it restricts their ability to pursue other business ventures while operating a Brain Balance center. This could impact their income potential and diversification of business interests. Franchisees need to be fully committed to the Brain Balance franchise and understand that they may not be able to operate other businesses simultaneously.
This level of control is not uncommon in franchising, as franchisors often want franchisees to focus solely on their brand to ensure consistent quality and service. However, the breadth of Brain Balance's restriction, allowing refusal for 'any reason or no reason,' is more stringent than some other franchise systems, where refusals must be reasonable and justified.
Therefore, prospective Brain Balance franchisees should carefully consider this restriction and discuss with Brain Balance what types of outside business activities might be permissible, and under what conditions consent might be granted or denied. Understanding Brain Balance's specific criteria or concerns regarding outside business activities is crucial before entering into a franchise agreement.