What is the length of the written notice Brain Balance must provide to terminate the agreement after an Event of Default?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.03. (a) Upon the occurrence of an Event of Default, COMPANY, at its option, may terminate this Agreement on five (5) days' written notice (or a notice for a longer period of time as may be required by the law of the jurisdiction in which FRANCHISEE's Center is located) without a right to cure, and this Agreement, together with the Franchise granted hereunder, shall thereupon expire.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, in the event of a default, Brain Balance has the option to terminate the franchise agreement with a written notice of five days. However, the notice period could be longer if required by the laws of the jurisdiction where the franchisee's center is located. In such cases, Brain Balance must adhere to the longer notice period mandated by local law.
This means that a Brain Balance franchisee could face termination of their agreement with only a short notice period if they are in default. The franchisee would then need to cease operations and discontinue using Brain Balance's trademarks and intellectual property.
It is important for a prospective Brain Balance franchisee to understand what constitutes an event of default under the franchise agreement and to ensure they are in compliance with all terms and conditions to avoid potential termination. Additionally, franchisees should be aware of the laws in their specific jurisdiction that may affect the notice period required for termination.