Where can I find details about the Brain Balance franchisee's obligations after termination of the franchise agreement?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
Sections 3, 6.02, 10 | Items 6, 7, 8 & 11 |
| Obligation | Section in Agreement | Disclosure | |
|---|---|---|---|
| Document Item | |||
| p. Indemnification | Section 19 Application License Agreement: Section 9 | Item 6 | |
| q. Owner's | Sections 10.01, 10.04, | Item 15 | |
| Participation/Management/Staffing | 10.09, 14.04 & 14.06 | ||
| r. |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 34–36)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, Item 9 provides a table outlining the franchisee's principal obligations under the franchise and other agreements. Specifically, post-termination obligations are addressed in Section 10.17, 10.18, 12.04, 16.04, 17 & 18.04 of the Franchise Agreement and Section 6 of the Application License Agreement. Further details regarding these obligations can be found in Item 17 of the Disclosure Document.
This means that if the franchise agreement is terminated, either by the franchisee or Brain Balance, the franchisee will have certain responsibilities that continue even after the agreement is no longer in effect. These obligations could include things like non-compete clauses, confidentiality requirements, and the proper handling of Brain Balance's proprietary information.
It is important for a prospective Brain Balance franchisee to carefully review Item 17 and the referenced sections in the Franchise Agreement and Application License Agreement to fully understand the scope and nature of these post-termination obligations. Understanding these obligations is crucial for making informed decisions about entering into a franchise agreement with Brain Balance, as they can significantly impact the franchisee's future business activities after the franchise relationship ends.
Franchisees should pay close attention to the specific requirements outlined in these sections, as failure to comply with post-termination obligations could result in legal action or financial penalties. Consulting with an attorney to review these provisions is highly recommended to ensure a complete understanding of the franchisee's rights and responsibilities.