What happens if Brain Balance modifies or discontinues the use of a trademark?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
You must modify or discontinue the use of a Mark if BBF modifies or discontinues it. If this happens, you will not be compensated by us in any manner as a result of this discontinuation or modification, and you will be responsible for all costs associated with it. We reserve the right to substitute different marks for the Marks for use in identifying Centers.
Source: Item 13 — TRADEMARKS (FDD pages 49–51)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, if Brain Balance modifies or discontinues the use of a trademark, franchisees must comply with the change. The franchisee will not receive any compensation from Brain Balance due to the modification or discontinuation. The franchisee is responsible for covering all costs associated with the change. Brain Balance also retains the right to substitute different marks for identifying its centers.
This clause in the Franchise Agreement means that Brain Balance has the flexibility to rebrand or update its trademarks as it sees fit, but franchisees bear the financial burden of implementing these changes. This could involve updating signage, marketing materials, and other branded items, potentially incurring significant costs for the franchisee.
It is fairly common in franchising for the franchisor to retain control over trademarks and branding. However, it is less common for the franchisee to bear the full cost of changes without compensation. Prospective Brain Balance franchisees should carefully consider the potential financial impact of future rebranding or trademark modifications and factor this risk into their investment decision. It would be prudent to inquire about the frequency of trademark changes and the estimated costs associated with such changes to better prepare for these potential expenses.