What obligations does a Body Brain Center franchisee have after terminating the franchise agreement?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- (ii) pay us all amounts that you owe us;
- (iii) comply with all covenants described in Section 14 that apply after the expiration, termination or Transfer of this Agreement or the disposal of an ownership interest by an Owner;
- (iv) return all copies of the Manual, or any portions thereof, as well as all signs, sign faces, brochures, advertising and promotional materials, forms, and any other materials bearing or containing any of the Marks, Copyrights or other identification relating to a Body & Brain Center, unless we allow you to transfer such items to an approved transferee;
- (v) take such action as may be required to cancel all fictitious or assumed names or equivalent registrations relating to your use of any of the Marks;
- (vi) provide us with a list of all of your current, former and prospective customers;
- (vii) assign all customer contracts and information to us (unless we allow you to transfer those contracts to an approved transferee);
- (viii) follow all policies we specify for a period of up to one (1) year after the termination or expiration date to address customer related issues, including transfer of memberships or customer agreements and issuance of refunds (you will be responsible for all requested refunds);
- (ix) make such modifications and alterations to the premises that are necessary or that we require to prevent any association between us or the System and any business subsequently operated by you or any third party at the premises; provided, however, that this subsection shall not apply if your franchise is transferred to an approved transferee;
- (x) notify all telephone companies, listing agencies and domain name registration companies (collectively, the "Agencies") of the termination or expiration of your right to use: (a) the telephone numbers and/or domain names, if applicable, related to the operation of your Center; and (b) any regular, classified or other telephone directory listings associated with the Marks (you hereby authorize the Agencies to transfer such telephone numbers, domain names and listings to us and you authorize us, and appoint us and any officer we designate as your attorney-in-fact to direct the Agencies to transfer the telephone numbers, domain names and listings to us if you fail or refuse to do so); and
- (xi) provide us with satisfactory evidence of your compliance with the above obligations within 30 days after the effective date of the termination, expiration o
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, franchisees have several obligations that must be fulfilled after the termination or expiration of the franchise agreement. These obligations are designed to protect Body Brain Center's brand, customer relationships, and intellectual property.
Upon termination, a franchisee must first pay all outstanding amounts owed to Body Brain Center. They must also comply with specific covenants outlined in Section 14 of the agreement, which remain in effect even after the agreement ends. This includes returning all copies of the operations manual, signs, brochures, advertising materials, and any other materials that contain Body Brain Center's trademarks or copyrights, unless the franchisor approves the transfer of these items to a new franchisee. Franchisees are also required to cancel any assumed names or registrations related to the use of Body Brain Center's marks.
Additionally, the franchisee must provide Body Brain Center with a list of all current, former, and prospective customers and assign all customer contracts and information to the franchisor, unless a transfer to an approved party is permitted. The franchisee is obligated to follow any policies set by Body Brain Center for up to one year after termination to address customer-related issues, including membership transfers and refunds, for which the franchisee will be responsible. Furthermore, franchisees must modify the premises to eliminate any association with Body Brain Center, unless the franchise is transferred to an approved transferee.
Finally, the franchisee is responsible for notifying all relevant agencies, such as telephone companies and domain name registrars, about the termination of their right to use telephone numbers and domain names associated with the Body Brain Center. They must also provide satisfactory evidence of compliance with all these obligations within 30 days of the termination or expiration date.