In a Brain Balance arbitration case, can the arbitrator stay the effectiveness of a pending termination?

According to the 2025 Brain Balance Franchise Disclosure Document, in any arbitration case between Brain Balance and a franchisee, the arbitrator does not have the authority to stay the effectiveness of a pending termination. This means that if Brain Balance decides to terminate the franchise agreement, the termination will proceed regardless of any ongoing arbitration.

This limitation on the arbitrator's power is explicitly stated in the franchise agreement. The arbitrator is also prohibited from assessing punitive, speculative, or exemplary damages and from making any award that extends, modifies, or suspends any lawful term of the agreement or any reasonable standard of business performance set by Brain Balance in good faith. The arbitrator's role is limited to resolving the specific issues in dispute between Brain Balance and the franchisee, and they cannot consider disputes involving other franchisees.

This clause favors Brain Balance, as it ensures that a termination can proceed without delay, even if the franchisee disputes the grounds for termination. The franchisee bears the risk of immediate business closure while the arbitration is ongoing. Prospective franchisees should carefully consider this provision and seek legal counsel to understand its implications fully. It is a fairly common practice in franchising to limit the powers of the arbitrator.