What standards must a proposed assignee or transferee meet to acquire a Brain Balance franchise?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
d within one hundred twenty (120) days after delivery of such offer to COMPANY, or upon substantially the same terms of the sale as specified in such offer, COMPANY shall again have the right of first refusal as herein provided.
COMPANY's written approval of the proposed sale to the named purchaser, if given, shall be conditioned upon the following:
- (a) Only the entire interest of FRANCHISEE under this Agreement may be assigned or transferred, and the entire interest of FRANCHISEE or its affiliated parties in the Standard BB Center must also be assigned and transferred to the same party.
- (b) Unless the assignee or transferee is a franchisee of COMPANY, the assignee or transferee shall undertake and successfully complete COMPANY's Initial Training Program at a location designated by COMPANY at the assignee or transferee's expense.
- (c) The proposed assignee or transferee shall meet the standards then imposed by COMPANY for new franchisees and shall demonstrate to COMPANY's satisfaction the ability to operate the business being transferred. FRANCHISEE shall provide COMPANY with a resume, credit check, and all such other information reasonably required by COMPANY with respect to the proposed assignee or transferee who shall be personally interviewed at a location designated by COMPANY at no cost to COMPANY.
- (d) The assignee or transferee executing both (x) a new 10-year franchise agreement in the form being used at the time by COMPANY for this franchise program, which agreement shall govern the rights and obligations of the parties, provided, however, the purchaser will not be obliged to pay an Initial Franchise Fee, and the Royalty as set forth in this Agreement shall not be altered, and (y) such other documents as COMPANY shall reasonably request in form and substance satisfactory to COMPANY.
- (e) FRANCHISEE shall have paid to COMPANY a Transfer Fee, the amount of $10,000 for the training, supervision, administration, accounting, legal, and/or other expenses of COMPANY in connection with the assignment and transfer. This Transfer Fee shall be collected for the combined transfer of the Standard BB Center and thi
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, several conditions must be met for a proposed assignee or transferee to acquire a Brain Balance franchise. First, only the entire interest of the franchisee under the existing agreement can be assigned or transferred, and the entire interest in the Standard Brain Balance Center must also be transferred to the same party.
Unless the assignee or transferee is already a Brain Balance franchisee, they must complete the company's Initial Training Program at their own expense at a location designated by Brain Balance. The proposed assignee or transferee must also meet the standards Brain Balance then imposes for new franchisees and demonstrate the ability to operate the business being transferred to Brain Balance's satisfaction. To facilitate this assessment, the franchisee must provide Brain Balance with a resume, credit check, and any other information reasonably required by Brain Balance. The proposed assignee or transferee will also be personally interviewed at a location designated by Brain Balance at no cost to Brain Balance.
Additionally, the assignee or transferee must execute a new 10-year franchise agreement in the form then being used by Brain Balance, which will govern the rights and obligations of the parties. The purchaser will not be obliged to pay an Initial Franchise Fee, and the Royalty as set forth in this Agreement shall not be altered. The assignee or transferee must also execute any other documents reasonably requested by Brain Balance in a form and substance satisfactory to Brain Balance. The franchisee must have paid Brain Balance a Transfer Fee of $10,000 for the training, supervision, administration, accounting, legal, and/or other expenses of Brain Balance in connection with the assignment and transfer. This Transfer Fee shall be collected for the combined transfer of the Standard BB Center and this Franchised Business. The franchisee must also have paid all monies due to Brain Balance under the existing agreement, and the transferee must pay a Software Agreement transfer fee of $2,500.