When transferring a Brain Balance franchise, must the franchisee agree in writing to remain obligated under the covenants in Section 18 as if the agreement terminated on the transfer date?

According to the 2025 Brain Balance Franchise Disclosure Document, a franchisee must agree in writing to remain obligated under the covenants in Section 18 as if the franchise agreement terminated on the date of transfer. This requirement is part of the conditions that must be met for Brain Balance to approve the transfer of a franchise.

This stipulation means that even after a Brain Balance franchisee sells their franchise, they are still responsible for certain obligations outlined in Section 18 of the franchise agreement. These obligations likely pertain to post-termination responsibilities, such as non-compete clauses or confidentiality agreements. The written agreement ensures that the franchisee understands and accepts these continuing obligations even after they no longer operate the Brain Balance center.

For a prospective Brain Balance franchisee, this condition highlights the importance of carefully reviewing Section 18 of the franchise agreement to fully understand the obligations that will extend beyond the term of their ownership. It is essential to seek legal counsel to clarify the scope and implications of these covenants before agreeing to the transfer. This requirement is not uncommon in franchising, as franchisors often seek to protect their brand and system standards even after a franchisee exits the system.