Which provisions of the Brain Balance franchise agreement remain in effect after termination of the agreement?
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."
10.17. (a) All permanent staff of the Franchised Business shall execute Exhibit 3, the Confidentiality, Non-Solicitation, and Non-Compete Agreement as provided in the Operations Manual.
FRANCHISEE will take such action in connection therewith as may be required by COMPANY both during and upon termination of this Agreement in order to protect any trade secrets that are proprietary to COMPANY or any information, knowledge, or know-how deemed confidential under this Agreement.
20.02. FRANCHISEE acknowledges that its franchise is one of a number of Brain Balance® Centers using COMPANY's service marks and style of conduct and that the failure on the part of FRANCHISEE to comply with any of the terms of this Agreement could cause irreparable damage to some or all of the other offices franchised or operated by COMPANY and to COMPANY's business. Therefore, and notwithstanding the provisions contained in Paragraph 20.01 above, FRANCHISEE agrees that upon the happening of any Non-Curable Default or Event of Default set forth in Section 17.01 or 17.02, or in the event of a threatened breach by FRANCHISEE of any of the terms of this Agreement, COMPANY shall have the immediate right to secure a court order enjoining any such default or threatened breach. If this Agreement shall have been terminated, FRANCHISEE may be enjoined from any continued operation of any Center franchised under this Agreement and/or the Franchised Business. This covenant shall be independent and severable and shall be enforceable notwithstanding any other rights or remedies that either party may have.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, several obligations persist even after the franchise agreement is terminated. Brain Balance requires that franchisees cease operating the franchised business and discontinue using Brain Balance's names, marks, and logos. This prevents former franchisees from trading on Brain Balance's brand recognition after the agreement ends.
Furthermore, Brain Balance mandates that franchisees ensure their staff adheres to the Confidentiality, Non-Solicitation, and Non-Compete Agreements, as outlined in the Operations Manual. This obligation extends both during and after the termination of the franchise agreement. This is to protect Brain Balance's trade secrets and confidential information.
Brain Balance also retains the right to seek injunctive relief to prevent any continued operation of a center or the franchised business if the agreement has been terminated. This provision, along with the others, underscores Brain Balance's commitment to protecting its brand, trade secrets, and overall network integrity, even after a franchise agreement concludes.