Who bears the costs of arbitration for Brain Balance franchise disputes?

According to Brain Balance's 2025 Franchise Disclosure Document, if a franchisee is required to reimburse Brain Balance for court costs or expenses, including attorney's fees, such a provision only applies if Brain Balance is the prevailing party in any judicial or arbitration proceeding. This means that a franchisee would only be responsible for covering Brain Balance's legal costs if Brain Balance wins the case.

This stipulation is particularly relevant for prospective franchisees as it clarifies the financial responsibilities in the event of a legal dispute. It ensures that franchisees are not automatically liable for Brain Balance's legal expenses, but only in situations where Brain Balance prevails in the legal or arbitration process. This can offer some financial protection to the franchisee.

This type of clause is fairly common in franchise agreements, as it aims to balance the interests of both the franchisor and franchisee in potential legal disputes. It's important for franchisees to understand this provision, as legal battles can be costly, and knowing when they might be responsible for the franchisor's expenses is crucial for financial planning and risk assessment.