What name change is required of a Brain Balance franchisee upon termination?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.04.
Upon the termination of this Agreement, whether as a result of an Event of Default or for any other reason, FRANCHISEE shall:
(a) Cease to be a FRANCHISEE, cease to operate the Franchised Business, and refrain and desist from using the names and Marks and all other marks, trade names, trademarks, or logos of COMPANY, or such names or logos similar thereto, in any manner whatsoever, including, without limitation, together with other words such as "formerly known as."
(b) Promptly change FRANCHISEE's name to a name that does not include the words "Brain Balance®" or "BBF" or any of the Marks or any words similar thereto.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, upon termination of the franchise agreement, a franchisee must promptly change their business's name. The new name must not include the words "Brain Balance®" or "BBF," or any of Brain Balance's other trademarks, service marks, or logos, or any names or logos similar to them. This requirement applies regardless of the reason for termination, whether due to an event of default or any other cause.
This provision is standard in franchising to protect the franchisor's brand identity and prevent confusion among customers. By mandating a name change, Brain Balance ensures that former franchisees do not continue to benefit from the brand's reputation after the franchise agreement ends. This helps maintain the integrity and consistency of the Brain Balance brand across all locations.
For a prospective Brain Balance franchisee, this means understanding that the right to use the Brain Balance name and branding is strictly tied to the active franchise agreement. If the agreement is terminated for any reason, the franchisee loses all rights to operate under the Brain Balance name and must immediately rebrand their business. This is a critical consideration for the franchisee's long-term business planning and exit strategy.