If the Brain Balance agreement has been terminated, what action may the licensee be prevented from doing?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, if the franchise agreement is terminated, the franchisee must cease operating the Franchised Business. They must also stop using Brain Balance's names and marks, including trademarks or logos, or any similar names or logos. This prevents the franchisee from continuing to represent themselves as part of the Brain Balance system after the agreement ends.
Brain Balance requires that upon termination of the agreement, the franchisee must change their name to exclude "Brain Balance®" or "BBF" or any similar marks. The franchisee must also transfer the rights to use the Franchised Business's telephone number to Brain Balance, if Brain Balance chooses.
Additionally, Brain Balance can seek a court order to prevent the franchisee from continuing to operate any center franchised under the agreement if the agreement has been terminated. This is to protect Brain Balance's brand and other franchisees from potential damage caused by a non-compliant former franchisee. This measure ensures that the franchisee adheres to the termination terms and does not continue to benefit from the Brain Balance brand without authorization.