What is required for any changes to the Brain Balance agreement to be valid?

According to Brain Balance's 2025 Franchise Disclosure Document, modifications to an existing franchise agreement in California require specific procedures to be followed. Brain Balance must first file a material modification application with the California Department of Financial Protection and Innovation. This application must include a disclosure document that clearly shows both the existing terms of the franchise agreement and the proposed new terms. This ensures transparency and allows for regulatory oversight of the changes.

Once the application is registered, Brain Balance is then obligated to provide the franchisee with the disclosure document. This document must include a clear explanation that the proposed changes to the franchise agreement are voluntary. This step is crucial to ensure that franchisees are not coerced into accepting modifications that may be detrimental to their business. The franchisee must be fully informed and have the freedom to choose whether or not to agree to the new terms.

These regulations are in place to protect franchisees from potentially unfair or disadvantageous modifications to their franchise agreements. By requiring franchisors to disclose all changes and ensuring that acceptance is voluntary, California law aims to create a more equitable relationship between franchisors like Brain Balance and their franchisees. Prospective franchisees should be aware of these protections and carefully review any proposed modifications to their franchise agreement.