Under what circumstances must a Brain Balance franchisee indemnify the franchisor?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Indemnification | Will vary under circumstances | As incurred | You must reimburse us if we are held liable for claims arising from your operations and under certain circumstances set forth in the Application License Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees may be required to indemnify Brain Balance under certain circumstances. The specific amount for indemnification will vary depending on the situation. If Brain Balance is held liable for claims arising from a franchisee's operations, the franchisee must reimburse Brain Balance. The exact circumstances requiring indemnification are detailed in the Application License Agreement.
This means that if a customer or other third party sues Brain Balance due to something that happened at the franchisee's center, and Brain Balance is found liable, the franchisee will have to cover Brain Balance's costs. These costs could include legal fees, settlement amounts, and other related expenses. The Application License Agreement will specify the exact situations that could trigger this requirement.
It is important for prospective Brain Balance franchisees to carefully review the Application License Agreement to understand the full scope of their indemnification obligations. Franchisees should seek legal counsel to fully understand their potential liabilities and how to mitigate these risks. Understanding these obligations is a crucial part of assessing the overall financial risk of investing in a Brain Balance franchise.