What names and marks must a Brain Balance franchisee cease using upon termination?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
d 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.
- 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 cease using the names and marks associated with the brand. Specifically, the franchisee must stop operating the Franchised Business and refrain from using the names and Marks, including all other marks, trade names, trademarks, or logos of Brain Balance, or names or logos similar to them. This includes refraining from using these marks with other words such as "formerly known as."
In practical terms, this means that a former Brain Balance franchisee cannot continue to operate a similar business using the Brain Balance brand or any confusingly similar branding. This restriction applies regardless of whether the termination was due to an event of default or any other reason. The franchisee is also required to promptly change their business name to one that does not include "Brain Balance," "BBF," or any similar marks.
These stipulations are standard in franchising to protect the franchisor's brand identity and goodwill. By preventing former franchisees from using the brand's trademarks, Brain Balance ensures that consumers can clearly distinguish between authorized franchisees and independent operators. This helps maintain consistency and quality control across the Brain Balance system. Additionally, the franchisee must transfer any telephone numbers used for the Brain Balance location to the company.