If the Brain Balance franchise agreement is terminated, can the franchisee be enjoined from continued operation of the franchised business?
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.
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.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees may be subject to a court order preventing them from operating a Brain Balance center if the franchise agreement is terminated. Specifically, the FDD states that if the agreement is terminated, the franchisee may be enjoined from any continued operation of any center franchised under the agreement and/or the franchised business. This measure is in place because Brain Balance franchises operate under the company's service marks and style of conduct, and any non-compliance with the agreement could cause irreparable damage to Brain Balance and its other franchisees.
Brain Balance retains the right to seek a court order enjoining any default or threatened breach of the franchise agreement. This right is in addition to any other remedies Brain Balance may have. This covenant is independent, severable, and enforceable regardless of other rights or remedies available to either party.
This clause highlights the importance of adhering to the franchise agreement. A prospective Brain Balance franchisee should carefully review the conditions under which the agreement can be terminated and the potential consequences, including being legally barred from continuing the business. This is a fairly standard clause in franchise agreements, designed to protect the brand and the network.