What rights does Brain Balance have if an Event of Default continues for 30 days after notice?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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, if an Event of Default continues for 30 or more days after Brain Balance gives the franchisee notice, Brain Balance has the absolute right, without additional notice, to cease providing or making available any or all services and benefits to the franchisee. This continues until the franchisee is current in the payment of fees, has filed all required reports, and has cured all other defaults.
This means that Brain Balance can suspend support and services to a franchisee who has failed to correct a default within 30 days of receiving notice. These services can include things like access to proprietary systems, marketing support, and operational guidance. The franchisee will not receive these services until all outstanding payments are made, all reports are filed, and all other defaults are resolved.
However, it is important to note that Brain Balance's decision to cease providing services does not relieve the franchisee of their ongoing obligations under the Franchise Agreement. The agreement remains in effect, and the franchisee is still responsible for fulfilling its terms, even while not receiving support from Brain Balance. This also does not constitute a termination of the agreement.