Under what condition can a Brain Balance franchisee assign or transfer their agreement?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
16.02. If FRANCHISEE is also transferring its rights in the Standard BB Center to the same assignee, FRANCHISEE may assign or transfer this Agreement, pursuant to the terms of this Section 16. FRANCHISEE may not assign or transfer this Agreement or any rights or interests herein or in the Franchised Business or any assets of the Franchised Business other than in the ordinary course of business or a partnership interest therein, or if FRANCHISEE is a corporation or an LLC, all or part of the equity of the corporation or LLC, except upon COMPANY's prior written consent, which will not be unreasonably withheld. FRANCHISEE must first obtain a bona fide, signed, unconditional, and firm written offer from a responsible and fully identified purchaser and shall submit a complete copy of such offer to COMPANY together with COMPANY's current application for franchise completed by the prospective purchaser. Such offer must be limited to this Agreement and the Franchised Business and may not include the purchase of any other property. Prior to any such assignment or transfer, a right of first refusal to acquire the entire right or interest of FRANCHISEE in the Franchised Business proposed to be assigned or
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, a franchisee can assign or transfer their agreement under specific conditions. The franchisee must first get Brain Balance's prior written consent, which will not be unreasonably withheld.
To get this consent, the franchisee needs to obtain a bona fide, signed, unconditional, and firm written offer from a responsible and fully identified purchaser. A complete copy of this offer, along with Brain Balance's current franchise application completed by the prospective purchaser, must be submitted to Brain Balance. The offer must be limited to the Franchise Agreement and the Franchised Business, and cannot include the purchase of any other property.
Prior to any assignment or transfer, Brain Balance has a right of first refusal to acquire the franchisee's entire right or interest in the Franchised Business proposed to be assigned or transferred. If the franchisee is also transferring its rights in the Standard BB Center to the same assignee, the franchisee may assign or transfer the Franchise Agreement, pursuant to the terms outlined in Section 16 of the agreement.