What standards must the proposed assignee or transferee meet to be approved by Brain Balance?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, a proposed assignee or transferee must meet several standards to be approved by Brain Balance. Unless the assignee or transferee is already a Brain Balance franchisee, they must successfully complete the company's Initial Training Program at a location designated by Brain Balance, and at their own expense. The proposed assignee or transferee must also meet the standards then imposed by Brain Balance for new franchisees and demonstrate the ability to operate the business to Brain Balance's satisfaction.
To facilitate this evaluation, the franchisee must provide Brain Balance with a resume, credit check, and any other information reasonably required by Brain Balance regarding the proposed assignee or transferee. The proposed assignee or transferee will also be personally interviewed at a location designated by Brain Balance, at no cost to Brain Balance.
Furthermore, the assignee or transferee is required to execute a new 10-year franchise agreement in the form being used by Brain Balance at the time of the transfer. While the purchaser won't have to pay an initial franchise fee, the royalty as set forth in the original agreement will remain unaltered. The assignee or transferee must also execute any other documents reasonably requested by Brain Balance in a form and substance satisfactory to them.
These requirements ensure that any new franchisee taking over an existing Brain Balance center meets the company's standards for training, financial stability, and operational ability, maintaining the consistency and quality of the Brain Balance brand. Additionally, the payment of transfer fees ensures Brain Balance is compensated for their time and expenses related to the transfer process.