What happens if the Brain Balance franchisee violates the non-compete agreement?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, if a franchisee violates the terms of the franchise agreement, including the non-compete agreement, Brain Balance has the right to seek immediate legal action. Specifically, Brain Balance can pursue a court order to stop the franchisee from continuing the breach or threatened breach of the agreement. This action is available to Brain Balance regardless of any other rights or remedies they may have.
This means that if a Brain Balance franchisee engages in activities that violate the non-compete agreement, such as operating a competing business or using confidential information in an unauthorized manner, Brain Balance can quickly seek an injunction to halt these activities. The FDD emphasizes that failure to comply with the franchise agreement can cause irreparable damage to other Brain Balance centers and the company's overall business.
Furthermore, if the franchise agreement has been terminated due to the franchisee's default, Brain Balance can seek a court order to prevent the former franchisee from continuing to operate any center under the Brain Balance name. This measure protects Brain Balance's brand and business model by ensuring that terminated franchisees do not continue to benefit from the company's trademarks and systems after their agreement has ended. The franchisee acknowledges that their franchise is one of a number of Brain Balance Centers using the company's service marks and style of conduct.