Can Brain Balance direct a termination in the use of any of the Marks?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
to engage in any business other than the Franchised Business, whether said business is conducted within or without the Territory or under the Marks or under any other name or mark.
2. USE OF NAME
- 2.01. FRANCHISEE is granted the right to use, and FRANCHISEE agrees to use, the words "Brain Balance®" as part of its trade or business name, in the exact manner and style set forth on Schedule I (the "Business Name") and as directed by COMPANY. COMPANY reserves the right to direct a change in the manner of use of the Marks by FRANCHISEE, and FRANCHISEE agrees to comply with such directions. FRANCHISEE shall not use the Marks as part of its corporate or limited liability company name without the prior written consent of COMPANY.
- 2.02. FRANCHISEE agrees to obtain COMPANY's prior written approval for all content used by FRANCHISEE on FRANCHISEE's link to COMPANY's Web site.
3. TERRITORY
- 3.01. FRANCHISEE is granted an exclusive right to establish a single location for the Franchised Business in the city, town, or village identified on Schedule I that is located within the Territory.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, Brain Balance has the authority to direct a change in how a franchisee uses its marks, and the franchisee must comply with these directions. Specifically, Brain Balance grants the franchisee the right to use the words "Brain Balance®" as part of their trade or business name, but this use must be in the exact manner and style directed by Brain Balance.
This means that while franchisees are permitted to use Brain Balance's trademarks and service marks, they must do so in a way that aligns with the franchisor's brand standards and guidelines. Brain Balance retains control over the presentation and usage of its brand identity. This control helps maintain consistency across all franchise locations and protects the brand's image and reputation.
Furthermore, upon termination of the Franchise Agreement, the franchisee must cease using the Brain Balance names and marks. This obligation is standard in franchising, ensuring that terminated franchisees do not continue to benefit from the brand's goodwill after their agreement ends. This protects Brain Balance's brand integrity and prevents potential confusion among customers.