How much notice does Brain Balance give to the Licensee if it terminates the agreement for convenience?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
6. Termination.
- (a) Termination of Franchise Agreement. This Agreement and the License granted hereunder shall automatically terminate, without notice to Licensee, in the event the Franchise Agreement is terminated.
- (b) Termination for Convenience. Licensor may, by notice to Licensee, terminate this Agreement with at least thirty (30) days notice, provided, however, that if such termination is effective at a time other than the end of the Term or a Renewal Term of the Franchise Agreement any unearned portion of the Maintenance Fees shall be refunded to Licensee pro rata.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the Licensor (Brain Balance) may terminate the Software Agreement for convenience by providing the Licensee with at least thirty (30) days' notice. This termination is enacted through a written notice to the Licensee.
If Brain Balance terminates the Software Agreement for convenience before the end of the term or any renewal term, they will refund a pro rata portion of any unearned maintenance fees to the Licensee. This means the franchisee would receive back a portion of the fees they paid for the remaining, unused period of the agreement.
This type of termination for convenience clause is relatively common in franchise agreements, allowing either party to end the agreement under certain conditions, though it is more often exercised by the franchisor. It is important for a prospective Brain Balance franchisee to understand the circumstances under which Brain Balance might invoke this clause and how it could impact their business operations and financial obligations.