What must a Brain Balance franchisee do upon termination of the franchise agreement regarding the use of Brain Balance's intellectual property?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
d all other defaults. COMPANY's exercise of such right shall not diminish FRANCHISEE's continuing obligations under this Agreement or constitute an actual or constructive termination of this Agreement.
- 17.04. Upon the termination of this Agreement, whether as a result of an Event of Default or for any other reason, FRANCHISEE shall:
- (a) Cease to be a FRANCHISEE, cease to operate the Franchised Business, and refrain and desist from using the names and Marks and all other marks, trade names, trademarks, or logos of COMPANY, or such names or logos similar thereto, in any manner whatsoever, including, without limitation, together with other words such as "formerly known as."
- (b) Promptly change FRANCHISEE's name to a name that does not include the words "Brain Balance®" or "BBF" or any of the Marks or any words similar thereto.
- (c) Promptly pay to COMPANY all debts, including any outstanding Royalty and Advertising Fund contribution, arising from FRANCHISEE's obligations under this
Agreement, which shall upon termination for any default by FRANCHISEE include all damages, costs, and expenses, including reasonable attorney's fees, incurred by COMPANY in obtaining injunctive relief for the enforcement of any provision of this Agreement as a result of the default and all Royalty and Advertising Fund contributions for the entire unperformed term of this Agreement.
- (d) Promptly endeavor to collect all accounts receivable and file reports with respect thereto that derive from services provided by FRANCHISEE pursuant to this Agreement whether before or after termination of this Agreement and pay COMPANY any Royalty or Advertising Fund contribution due thereon in the amount and manner required by this Agreement.
- (e) Deliver to COMPANY (electronically, if so requested by COMPANY) within ten (10) days of termination: (i) all files and records in respect to client services, research and development data provided to, or maintained by, FRANCHISEE through the System;
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, upon termination of the franchise agreement, a franchisee must cease operating the franchised business and discontinue using Brain Balance's names, marks, trade names, trademarks, or logos, including any similar variations. The franchisee must also promptly change their business name to one that does not include "Brain Balance®," "BBF," or any similar marks. This prevents any potential confusion or association with the Brain Balance brand after the franchise agreement ends.
In addition to ceasing the use of Brain Balance's intellectual property, the franchisee is required to deliver specific items to Brain Balance within ten days of termination. These include all files and records related to client services and research and development data, all records, lists, and information concerning client accounts, prospective clients, and employees, and all copies of Brain Balance's Operations Manual, video tapes, and other materials bearing the marks or belonging to Brain Balance. This ensures that Brain Balance retains control over its proprietary information and operational resources.
Furthermore, the franchisee must immediately stop using the franchised business's telephone number(s) and, if Brain Balance chooses, transfer and assign the right to use such numbers to Brain Balance or its designee. The franchisee must also take necessary actions to transfer and assign all telephone numbers and white and yellow page telephone references and advertisements to Brain Balance or its designee. These steps are designed to fully disconnect the franchisee from the Brain Balance system and prevent any continued representation as part of the Brain Balance network.