What happens if a Brain Balance franchisee damages the reputation of the company?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
the American Arbitration Association, attorneys, and accountants. Judgment upon any award of the arbitrator(s) shall be conclusive and binding and shall be entered in a court of competent jurisdiction.
20.02. FRANCHISEE acknowledges that its franchise is one of a number of Brain Balance® Centers using COMPANY's service marks and style of conduct and that the failure on
the part of FRANCHISEE to comply with any of the terms of this Agreement could cause irreparable damage to some or all of the other offices franchised or operated by COMPANY and to COMPANY's business. Therefore, and notwithstanding the provisions contained in Paragraph 20.01 above, FRANCHISEE agrees that upon the happening of any Non-Curable Default or Event of Default set forth in Section 17.01 or 17.02, or in the event of a threatened breach by FRANCHISEE of any of the terms of this Agreement, COMPANY shall have the immediate right to secure a court order enjoining any such default or threatened breach. If this Agreement shall have been terminated, FRANCHISEE may be enjoined from any continued operation of any Center franchised under this Agreement and/or the Franchised Business. This covenant shall be independent and severable and shall be enforceable notwithstanding any other rights or remedies that either party may have.
20.03. Each right or remedy granted to COMPANY by this Agreement is cumulative of all other rights or remedies given by this Agreement or by law or equity.
- 20.04. (a) If a claim for amounts owed by FRANCHISEE to COMPANY is asserted in any legal proceeding before a court of competent jurisdiction, then FRANCHISEE shall not interpose any counterclaim in any such proceeding, and then both parties waive their right, if any, to a trial by jury.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees acknowledge that their actions reflect on the entire Brain Balance network. If a franchisee fails to comply with the terms of the franchise agreement, it could cause significant damage to other Brain Balance centers and the company itself.
Brain Balance has the right to seek a court order to stop any default or threatened breach of the agreement. If the franchise agreement is terminated, the franchisee can be prohibited from continuing to operate the Brain Balance center. This measure is in place to protect the brand's reputation and the interests of other franchisees.
Additionally, upon termination of the franchise agreement due to a franchisee's default, Brain Balance can require the franchisee to change their business name to remove any association with the Brain Balance brand. The franchisee is also responsible for paying all outstanding debts, including royalties, advertising fees, and any costs incurred by Brain Balance in obtaining injunctive relief due to the franchisee's default. This includes covering royalties and advertising fund contributions for the remaining term of the agreement.