How long does a Brain Balance franchisee have to cure a payment default after receiving notice from the company?
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.
(b) Upon the occurrence of an Event of Default that continues for thirty (30) or more days of COMPANY giving FRANCHISE notice of such default, COMPANY shall have the absolute right without additional notice, to cease providing or making available any or all services and benefits provided for hereunder to FRANCHISEE until FRANCHISEE is current in the payment of fees and the filing of reports and has cured all other defaults.
COMPANY's exercise of such right shall not diminish FRANCHISEE's continuing obligations under this Agreement or constitute an actual or constructive termination of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, a franchisee has at least 30 days to cure a payment default after receiving notice from Brain Balance. Specifically, if an Event of Default continues for 30 or more days after Brain Balance provides notice, Brain Balance has the right to cease providing services and benefits until the franchisee becomes current on payments and cures all other defaults. This cessation of services does not relieve the franchisee of their ongoing obligations under the agreement, nor does it constitute a termination of the agreement.
However, it's important to note that Brain Balance can terminate the franchise agreement with only five days' written notice (or longer if required by local law) without providing an opportunity to cure for certain Events of Default. The FDD does not specify which defaults fall into this 'non-curable' category in this section, so it is important to understand what constitutes a curable versus non-curable default.
In practical terms, this means a Brain Balance franchisee who falls behind on payments has a limited time to rectify the situation before the franchisor can take action, such as suspending services or ultimately terminating the agreement. The franchisee should pay close attention to any default notices and act promptly to resolve the issues within the given timeframe to avoid further penalties or termination of the franchise agreement.