Does the Brain Balance franchise agreement specify that the franchisee acknowledges the goodwill attached to the Brain Balance Marks?

According to the 2025 Brain Balance Franchise Disclosure Document, the franchise agreement does specify that the franchisee acknowledges the goodwill associated with the Brain Balance Marks. The agreement states that the Brain Balance business, when operated according to the System and utilizing the Marks, has acquired distinctive and valuable goodwill among the public. This acknowledgement is part of the recitals in the franchise agreement, preceding the formal granting of the franchise.

This acknowledgement is significant because it establishes the franchisee's understanding of the value and reputation of the Brain Balance brand. By agreeing to this, the franchisee recognizes that the brand's reputation contributes to the potential success of their individual center. It also reinforces the importance of adhering to Brain Balance's standards and procedures to maintain and enhance this goodwill.

Furthermore, this clause protects Brain Balance's brand. It allows Brain Balance to take action if a franchisee's actions damage the brand's reputation. This protection is crucial for maintaining a consistent brand image across all franchise locations. The franchisee's acknowledgement of the brand's goodwill sets a clear expectation that they will act in a way that upholds the brand's value.

In practical terms, this means a prospective Brain Balance franchisee should understand that they are not just buying a business, but also aligning themselves with an established brand and its reputation. They are expected to contribute positively to that reputation through their operations. This clause underscores the importance of following the franchisor's system and maintaining high standards of service and professionalism to protect the brand's goodwill.