What is required for a Brain Balance franchisee to operate the franchised business from an additional location or outside of the territory?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.03. FRANCHISEE acknowledges that the Franchise granted hereunder is limited to the establishment and operation of the Franchised Business in a single location within the Territory. FRANCHISEE may not operate the Franchised Business from an additional location or outside of the Territory unless a separate franchise agreement is signed by the parties and an additional Initial Franchise Fee (as hereinafter defined) is paid by FRANCHISEE to COMPANY.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, a franchisee is granted the right to establish a single Brain Balance location within their designated territory. The agreement specifies that franchisees cannot operate the franchised business from an additional location or outside their territory without meeting specific requirements.
To operate from an additional location or outside the initially assigned territory, a Brain Balance franchisee must sign a separate franchise agreement with the company. In addition to signing a new agreement, the franchisee is required to pay an additional Initial Franchise Fee to Brain Balance. The FDD does not specify the amount of this initial franchise fee.
This stipulation ensures that Brain Balance maintains control over its brand's expansion and market saturation. It also protects the interests of other franchisees by preventing encroachment into their territories. A prospective franchisee should inquire about the costs associated with expanding their operations, including the amount of the initial franchise fee for additional locations.