If a Brain Balance franchisee fails to maintain required insurance, what right does Brain Balance have?

According to Brain Balance's 2025 Franchise Disclosure Document, if a franchisee fails to maintain the required insurance coverage, Brain Balance has the right to procure the insurance on behalf of the franchisee. The franchisee is then responsible for reimbursing Brain Balance for all costs associated with obtaining the insurance, including premiums and any applicable administrative costs.

Furthermore, the FDD states that failure to procure or maintain the required insurance coverage, or failure to reimburse Brain Balance for the costs incurred, may be considered a default of the Franchise Agreement. This exposes the franchisee to penalties associated with such default, as detailed in the Operations Manual.

This stipulation underscores the importance of maintaining adequate insurance coverage as a Brain Balance franchisee. Franchisees should ensure they understand the required coverage and maintain open communication with Brain Balance and their insurance providers to avoid potential defaults and associated penalties. Franchisees are also required to give Brain Balance at least 30 days prior notice before terminating, non-renewing or materially altering any of the insurance coverages Brain Balance requires.