For Brain Balance, what happens if the Agreement expires and terminates for any reason?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of (i) a default under the Lease by Assignor, (ii) a default under the Agreement by Assignor, or (iii) the expiration and termination of the Agreement for any reason whatsoever, Assignee shall have the option to accept this Assignment and replace Assignor as tenant under the Lease pursuant to the terms set forth herein by providing an Assignment Notice (as defined in Section 6) to Landlord.
BB Franchising LLC 1320 North Route 59, Unit 116 Naperville, IL 60563
Phone: 510-817-2786 Fax: 510-240-1261 Ownership@brainbalancecenters.com www.brainbalance.com
EXHIBIT 4 SECTION 17.04(f) CONDITIONAL ASSIGNMENT OF TELEPHONE NUMBERS
FOR VALUE RECEIVED, the undersigned FRANCHISEE hereby irrevocably assigns the telephone listing and numbers stated below to FRANCHISOR, BB FRANCHISING LLC, upon the following terms and conditions:
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- This assignment is made pursuant to
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- FRANCHISEE shall retain the limited conditional right to use the telephone listing and numbers solely for the transaction and advertising of the Franchised Business (as defined in the "Agreement") while the Agreement remains in full force and effect, but upon expiration and termination of the Agreement for any reason whatsoever, the limited conditional right to use of the telephone listing and numbers by FRANCHISEE shall also expire and/or terminate.
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- The telephone listing and numbers subject to this assignment are: _______________________ and any other telephone numbers used by FRANCHISEE in the Franchised Business in the future.
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- This assignment is freely transferable by FRANCHISOR, BB FRANCHISING LLC, to any person or entity. This assignment inures to the benefit of all parties who lawfully succeed to the rights or take the place of FRANCHISOR, BB FRANCHISING LLC.
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the expiration and termination of the Franchise Agreement for any reason gives Brain Balance the option to assume the franchisee's lease. Specifically, Brain Balance, as the 'Assignee,' can replace the franchisee, referred to as the 'Assignor,' as the tenant under the lease by providing an Assignment Notice to the Landlord. This is part of a Conditional Assignment of Lease agreement made between Brain Balance, the franchisee, and the Landlord.
Additionally, upon the expiration and termination of the Franchise Agreement for any reason, the franchisee's right to use assigned telephone listings and numbers also expires and/or terminates. The franchisee retains a limited conditional right to use these telephone listings and numbers only while the Franchise Agreement remains in full effect. This assignment of telephone numbers is freely transferable by Brain Balance to any person or entity.
These conditions protect Brain Balance's interests by ensuring control over the business location and contact information, even after a franchise agreement ends. For a prospective franchisee, this means that upon termination or expiration of the agreement, they will lose the right to operate at the current location if Brain Balance chooses to take over the lease, and they will no longer be able to use the phone numbers associated with the Brain Balance center.