Under the Brain Balance agreement, can the franchisee obligate the company?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
nment to COMPANY and expressly provide that there are no obligations imposed on or granted against COMPANY. FRANCHISEE shall open the Center within nine (9) months of the date of this Agreement.
10.04. FRANCHISEE shall pay on a timely basis all of its bills and obligations; federal, state, and local and other expenses; and all taxes of the Franchised Business. FRANCHISEE shall not create or incur any expenses chargeable to COMPANY without COMPANY's prior written approval.
10.05.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from creating any financial obligations on behalf of the company without prior written consent. This is a standard provision in franchise agreements, designed to protect the franchisor from unauthorized liabilities. Specifically, franchisees must pay all their own bills, obligations, and taxes related to the franchised business.
This requirement extends to the franchisee's lease agreement, which must be approved by Brain Balance and contain provisions that prevent any obligations from being imposed on or granted against Brain Balance. This ensures that Brain Balance is not held responsible for any liabilities arising from the franchisee's operations or lease terms.
In practical terms, a prospective Brain Balance franchisee needs to understand that they cannot enter into any contracts or agreements that would financially bind Brain Balance without express permission. This includes, but is not limited to, supplier contracts, marketing agreements, or any other business-related expenses. Failure to comply with this provision could result in a breach of the franchise agreement.