What are the requirements for a Brain Balance franchisee to renew or extend the franchise agreement?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
ble lists certain important provisions of the Franchise and related agreements. You should read these provisions in the agreements attached to this Disclosure Document.**
| Provision | Section in Franchise Agreement (or Satellite Franchise Agreement, if different) | Summary | |
|---|---|---|---|
| a. | Term of the Franchise | 4.01 | 10 years |
| b. | Renewal or Extension of the Term | 4.02 | The Franchise Agreement may be extended for an additional term of 5 years unless you give written notice at least 3 months but not more than 6 months prior to expiration of the current term. |
| c. | Requirements for You to Renew or Extend | 4.02 | Execute the current form of the Franchise Agreement and pay a |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 54–61)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the franchise agreement has an initial term of 10 years, but it can be extended for an additional 5-year term if certain conditions are met. To renew the franchise agreement, a Brain Balance franchisee must provide written notice to Brain Balance at least 3 months, but not more than 6 months, before the expiration of the current term.
In addition to providing timely notice, the franchisee must execute the current form of the Franchise Agreement, which may contain materially different terms and conditions than the original agreement. The franchisee must also pay a renewal fee of $10,000. Furthermore, Brain Balance must re-approve the franchisee for renewal.
It is important for prospective Brain Balance franchisees to understand that the terms of the renewed agreement may differ significantly from the original agreement. This could include changes to fees, operating procedures, or other key aspects of the franchise relationship. The renewal is not automatic and is subject to Brain Balance's approval, giving them considerable discretion over who they allow to continue operating under the Brain Balance brand. Franchisees should carefully review the renewal terms and consider seeking legal counsel before committing to an additional term.