Under what conditions can a Brain Balance franchisee sell assets?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall not sell any assets other than in the ordinary course of business or, if a corporation, shall not merge or consolidate with another entity, reorganize, or amend its corporate charter nor shall it permit its officers, directors, shareholders, or members to assign or transfer shares of stock, except in strict accordance with the provisions of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, a franchisee is restricted from selling assets outside of normal business operations. Specifically, a Brain Balance franchisee can sell assets only in the ordinary course of business.
For a franchisee operating as a corporation, additional restrictions apply. The franchisee cannot merge or consolidate with another entity, reorganize, or amend its corporate charter.
Furthermore, the officers, directors, shareholders, or members of a corporate franchisee are not allowed to assign or transfer shares of stock, except in strict accordance with the provisions outlined in the franchise agreement. This clause ensures that changes in ownership or corporate structure do not occur without adherence to the franchisor's guidelines, maintaining the integrity and consistency of the Brain Balance brand.