Under what conditions can a Brain Balance franchisee renew or transfer their franchise agreement?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
tware Development Assets*
Acquired intangible assets subject to amortization are stated at cost and are amortized using the straightline method over the estimated useful lives of the assets. Intangible assets that are subject to amortization are reviewed for potential impairment whenever events or circumstances indicate that carrying amounts may not be recoverable.
Revenue Recognition
The Company's revenue consists of franchise fees, royalties, advertising fees, enrollment kits, virtual program kits, software fees, coaching, and other. The Company franchises the right to operate Brain Balance Achievement Centers. The initial term of the franchise agreement is typically 10 years, with an option to renew for a fee or transfer the franchise agreement to a new or existing franchisee, at which point a transfer or renewal fee is typically paid.
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the initial term of a franchise agreement is typically 10 years, with the option to renew for a fee or transfer the franchise agreement to a new or existing franchisee, typically for a transfer or renewal fee.
In California, franchisees must sign a general release if they renew or transfer their franchise. However, California law voids any waiver of rights under the Franchise Investment Law or the Franchise Relations Act.
In Washington, any release or waiver executed in connection with a renewal or transfer of a Brain Balance franchise is void unless it meets specific conditions, such as being part of a negotiated settlement with independent counsel after the agreement is in effect. Transfer fees in Washington are collectable only to the extent that they reflect Brain Balance's reasonable estimated or actual costs in effecting a transfer.
Prospective franchisees should carefully review Item 17 of the Franchise Disclosure Document, which contains summaries of the franchise agreement provisions, but should be aware that these provisions are subject to state law. Franchisees should consult with legal counsel to understand their rights and obligations regarding renewal and transfer, particularly in California and Washington.