What standards must a proposed Brain Balance assignee or transferee meet, as imposed by Brain Balance for new franchisees?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
staff who are engaged to work at FRANCHISEE's Center. FRANCHISEE must send a new Program Director to the next regularly scheduled Initial Training session for which FRANCHISEE will be charged $300.
- 10.12. FRANCHISEE shall not sell any assets other than in the ordinary course of business or, if a corporation, shall not merge or consolidate with another entity, reorganize, or amend its corporate charter nor shall it permit its officers, directors, shareholders, or members to assign or transfer shares o
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
The 2025 Brain Balance Franchise Disclosure Document outlines several obligations and restrictions related to the transfer of ownership. Specifically, franchisees cannot sell assets outside the normal course of business, nor can they merge, consolidate, reorganize, or amend their corporate charter without adhering to the agreement's provisions. Furthermore, officers, directors, shareholders, or members are restricted from assigning or transferring shares of stock, except as strictly outlined in the franchise agreement.
Additionally, Brain Balance requires that the franchisee or its principal must have satisfactorily completed the Initial Training Program. This suggests that any potential buyer or transferee would likely need to undergo and successfully complete this training to ensure they are equipped to operate the franchise according to Brain Balance's standards.
These stipulations ensure that any new owner is properly trained and committed to upholding the brand's standards and operational procedures. Prospective franchisees should carefully review the franchise agreement and discuss transfer requirements with Brain Balance to fully understand the process and criteria for approval.