What is the renewal fee for a Brain Balance franchise agreement extension?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
otherwise terminated pursuant to the terms and conditions of this Agreement, the initial term of this Agreement shall be for a period of ten (10) years, commencing on the date hereof ("Initial Term").
- 4.02. Provided FRANCHISEE is in full compliance with the terms hereof, the term of this Agreement may be renewed for an additional five (5) year term unless at least three (3) months but not more than six (6) months prior to the expiration of the Initial Term or any extension thereof notice of intention to finally terminate is given in writing by registered mail by FRANCHISEE to COMPANY. No Initial Franchise Fee (as hereinafter defined) is charged upon the extension of the term; however, FRANCHISEE will be required to pay a renewal fee of Ten Thousand Dollars ($10,000). At its option, COMPANY may require FRANCHISEE to execute the form of franchise
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the initial term of the franchise agreement is concurrent with the standard center and can be renewed for an additional five-year term if the franchisee is in full compliance with the agreement's terms. To renew the agreement, the franchisee must provide written notice of their intention to renew via registered mail to Brain Balance at least three months, but no more than six months, before the expiration of the current term.
While Brain Balance does not charge an initial franchise fee for the extension, the franchisee is required to pay a renewal fee of $10,000. Additionally, Brain Balance has the option to require the franchisee to execute the current form of the franchise agreement used for new franchisees, which may include materially different terms and conditions.
This means that a franchisee looking to extend their agreement needs to budget $10,000 for the renewal fee. They should also carefully review the new franchise agreement presented by Brain Balance, as it may contain updated terms that could significantly impact their business operations and obligations. Franchisees should seek legal counsel to understand any changes before signing the renewal agreement.