What happens if a Brain Balance franchisee fails to employ a Center Director?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall maintain, at all times, a full-time staff of no less than a Center Director and a Program Director, and an appropriate number of Program Coaches, who may be part-time, as required to deliver the services as we require.
At the discretion of COMPANY, FRANCHISEE may work in the Center in one of the above positions but if they do not they must appropriately train individuals to fill each role.
After Soft Opening, FRANCHISEE shall be responsible, at their own expense, for training any new staff who are engaged to work at FRANCHISEE's Center.
FRANCHISEE must send a new Center Director or Program Director to the next regularly scheduled Initial Training session for which FRANCHISEE will be charged $300.
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.
17.03. (a) Upon the occurrence of an Event of Default, COMPANY, at its option, may terminate this Agreement on five (5) days' written notice (or a notice for a longer period of time as may be required by the law of the jurisdiction in which FRANCHISEE's Center is located) without a right to cure, and this Agreement, together with the Franchise granted hereunder, shall thereupon expire.
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."
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, franchisees must maintain a full-time staff that includes a Center Director, a Program Director, and an appropriate number of Program Coaches. The Program Coaches can be part-time, as needed to deliver the required services.
If a Brain Balance franchisee does not work in the center as a Center Director, Program Director, or other position, they must appropriately train individuals to fill each role. Franchisees are responsible for training any new staff after the soft opening of their center. If a franchisee hires a new Center Director or Program Director, they must send them to the next regularly scheduled initial training session, which costs $300.
The FDD states that the failure to comply with any terms of the agreement could cause irreparable damage to other Brain Balance centers and the company's business. Therefore, if a franchisee fails to maintain the required staffing, including a Center Director, Brain Balance has the right to seek a court order to enforce compliance with the agreement. This could involve enjoining the franchisee from continuing operations if the agreement is terminated.
Failure to have a Center Director would be a breach of the franchise agreement, which could lead to Brain Balance terminating the agreement after a specified period. Upon termination, the franchisee must cease operating the Brain Balance center and discontinue using Brain Balance's names, marks, and logos.