Can the arbitrator(s) stay the effectiveness of any pending termination under the Brain Balance agreement?

According to Brain Balance's 2025 Franchise Disclosure Document, the arbitrator(s) do not have the authority to stay the effectiveness of any pending termination. This means that if Brain Balance decides to terminate the franchise agreement, the termination will proceed without delay, regardless of any arbitration proceedings.

This limitation on the arbitrator's powers is significant for a prospective franchisee. It means that if Brain Balance alleges a breach of contract and moves to terminate the agreement, the franchisee cannot rely on arbitration to temporarily halt the termination while the dispute is being resolved. The franchisee would lose the right to operate the Brain Balance center immediately upon termination, even if they believe the termination is unjustified.

This clause favors Brain Balance, as it allows them to enforce terminations quickly. A franchisee who believes they have been wrongly terminated would have to pursue arbitration after the fact, without the ability to continue operating the business during the arbitration process. This could put the franchisee in a difficult financial position, as they would lose income from the Brain Balance center while incurring legal expenses for the arbitration.

It is important for a prospective Brain Balance franchisee to understand this limitation on the arbitrator's powers and to carefully consider the potential risks associated with it. Franchisees should seek legal counsel to fully understand their rights and obligations under the franchise agreement.