What section of the Brain Balance Franchise Agreement discusses the term of the franchise?
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 renewal fee equal to $10,000 You may be asked to sign a contract with materially different terms and conditions than your original agreement. Must be re-approved by us. |
| d. | Termination by You |
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 term of the franchise is addressed in Section 4.01 of the Franchise Agreement. Specifically, Item 17 outlines that the franchise term is 10 years.
Furthermore, Section 4.02 details the conditions for renewal or extension of the franchise term. A franchisee can extend the agreement for an additional 5 years if they provide written notice to Brain Balance at least 3 months, but not more than 6 months, before the current term expires.
To renew the franchise agreement, Section 4.02 states that the franchisee must execute the current form of the Franchise Agreement, pay a renewal fee of $10,000, and be re-approved by Brain Balance. It is important to note that the renewal agreement may contain materially different terms and conditions from the original agreement. Section 4.03 states that a franchisee may terminate the agreement for any grounds permitted by law, but does not have the right to terminate prior to the end of the 10 year term for convenience.