What constitutes an Event of Default for a Brain Balance franchisee if they fail to make a payment?

According to Brain Balance's 2025 Franchise Disclosure Document, an Event of Default occurs if a franchisee fails to make any payment when due, as required by the terms of the Franchise Agreement or any other agreement between Brain Balance and the franchisee. This also applies if the franchisee violates any other term, provision, or condition of any agreement with Brain Balance.

However, this failure or violation must continue for more than fifteen (15) days after Brain Balance sends a notice to the franchisee. The 15-day period may be longer if required by law in the franchisee's jurisdiction. This notice period provides an opportunity for the franchisee to rectify the situation before Brain Balance declares an official Event of Default.

This clause is important for prospective franchisees as it outlines the financial obligations and other responsibilities they must meet to remain in good standing with Brain Balance. Failure to adhere to these terms, especially regarding payments, can lead to serious consequences, including termination of the franchise agreement. Franchisees should ensure they understand all payment terms and other contractual obligations to avoid defaulting on their agreement.