Under what conditions can Body Brain Center terminate the agreement without a cure period?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.2 Termination By Us Without Cure Period. We may, in our sole discretion, terminate this Agreement upon five (5) days' written notice, without opportunity to cure, for any of the following reasons, all of which constitute material events of default under this Agreement:
- (i) if you fail to open your Center in the time and manner required by Section 7.4;
- (ii) if a regulatory authority suspends or revokes a license or permit held by you or an Owner that is required to operate the Business, even if you or the Owner still maintain appeal rights;
- (iii) if you become insolvent by reason of your inability to pay your debts as they become due or you file a voluntary petition in bankruptcy or any pleading seeking any reorganization, liquidation, dissolution or composition or other settlement with creditors under any law, or are the subject of an involuntary bankruptcy (which may or may not be enforceable under the Bankruptcy Act of 1978);
- (iv) if your Business, or a substantial portion of the assets associated with your Business, are seized, taken over or foreclosed by a government official in the exercise of his or her duties, or seized, taken over or foreclosed by a creditor, lienholder or lessor; or a final judgment against you remains unsatisfied for 30 days (unless a supersedes or other appeal bond has been filed); or a levy of execution has been made upon the license granted by this Agreement or upon any property used in your Business, and it is not discharged within five (5) days of the levy;
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, there are several conditions under which Body Brain Center can terminate the franchise agreement with only five days' written notice and without providing an opportunity for the franchisee to correct the issue. These conditions are considered material events of default.
Body Brain Center can terminate the agreement if the franchisee fails to open their center as required, or if a regulatory authority suspends or revokes a necessary license or permit. Furthermore, Body Brain Center can terminate the agreement if the franchisee becomes insolvent, files for bankruptcy, or has their business or assets seized by a government official or creditor. The existence of an unsatisfied final judgment against the franchisee for 30 days, or a levy of execution upon the franchise license or business property that is not discharged within five days, also allows Body Brain Center to terminate the agreement without a cure period.
These termination conditions highlight the importance of franchisees maintaining financial stability, complying with all applicable laws and regulations, and diligently managing their Body Brain Center. Failure to meet these obligations can result in the immediate termination of the franchise agreement, potentially leading to significant financial losses for the franchisee.