What sections of the Brain Balance agreements cover the process and conditions for transfer and assignment of the franchise?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Agreement | Disclosure | |
|---|---|---|---|
| Document Item | |||
| p. Indemnification | Section 19 Application License Agreement: Section 9 | Item 6 | |
| q. Owner's | Sections 10.01, 10.04, | Item 15 | |
| Participation/Management/Staffing | 10.09, 14.04 & 14.06 | ||
| r. Records/Reports | Section 7 | Items 6 & 17 | |
| s. Inspections/Audit | Sections 7, 11.02 & 17.02 | Items 6 & 11 | |
| t. Transfer and Assignment | Sections 10.10, 16, 17.02 & 17.04 Application License Agreement: Section 13(b) | Items 6 & 17 | |
| u. Renewal | Section 4 Application License Agreement: Section 5 | Items 6 & 17 | |
| v. Post-termination Obligations | Sections 10.17, 10.18, 12.04, 16.04, 17 & 18.04 Application License Agreement: Section 6 | Item 17 | |
| w. Non-competition Covenants | Section 18 Application License Agreement: Section 1(b) | Item 17 | |
| x. Dispute Resolution | Sections 20 & 21 Application License Agreement: Section 19 | Item 17 |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 34–36)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, including details on the transfer and assignment of the franchise. Specifically, the sections that address transfer and assignment are Sections 10.10, 16, 17.02 & 17.04 of the Application License Agreement, as well as Section 13(b).
These sections are important for prospective franchisees as they detail the conditions under which they can transfer their franchise to another party or assign their rights and obligations under the franchise agreement. Understanding these sections is crucial for franchisees who may, at some point, want to sell their franchise or change their business structure.
Additionally, Item 9 indicates that further information regarding transfer and assignment can be found in Items 6 and 17 of the Disclosure Document. This suggests that these items provide additional details or context related to the transfer and assignment process, such as any fees associated with the transfer or the franchisor's approval process. Franchisees should carefully review these sections to fully understand their rights and responsibilities regarding franchise transfer and assignment.