Under what conditions can Brain Balance grant a franchisee an extension to commence operations?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.02. If, for any reason, FRANCHISEE shall fail to commence operations within nine (9) months from the date of this Agreement, COMPANY, at its option, may either (a) grant FRANCHISEE, in writing, a one-time, ninety (90) day extension of such deadline or (b) terminate this Agreement and retain all monies theretofore paid by FRANCHISEE to COMPANY.
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 generally required to commence operations within nine months from the date of the Franchise Agreement. However, if the franchisee fails to meet this deadline for any reason, Brain Balance has the option to grant a written extension.
This extension is a one-time allowance, providing the franchisee with an additional 90 days to begin operations. It's important to note that Brain Balance is not obligated to grant this extension. Instead, they reserve the right to terminate the Franchise Agreement and retain all the monies previously paid by the franchisee.
This clause highlights a potential risk for franchisees. Failure to open the Brain Balance center within the initial timeframe could lead to termination of the agreement and loss of investment. Prospective franchisees should carefully consider their ability to meet the opening deadline and discuss any potential challenges with Brain Balance before signing the agreement.