If Brain Balance modifies or discontinues a trademark, will the franchisee be compensated for costs associated with the change?
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 will not be compensated for any associated costs. The franchisee is responsible for all expenses incurred due to the modification or discontinuation of the trademark. Brain Balance also retains the right to substitute different marks for use in identifying centers.
This means that if Brain Balance decides to change its branding or discontinue a particular trademark, franchisees must comply with these changes. This could involve updating signage, marketing materials, and other branded items to reflect the new trademarks. The financial burden of these updates falls entirely on the franchisee, which could be a significant expense depending on the extent of the changes.
This policy is not uncommon in franchising, as franchisors typically maintain control over their brand and trademarks. However, it's important for prospective Brain Balance franchisees to be aware of this potential cost and factor it into their financial planning. Franchisees should inquire about the likelihood of trademark changes and the potential costs associated with such changes to better prepare for these scenarios.