Under what circumstances are Costs and Attorneys' Fees payable to Brain Balance?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Name of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Annual Convention | Franchisee: $750 per person Staff: $700 per person We have the right to increase this fee up to $1,500 per person, on at least 30 days' notice to you. | At the point of registration, prior to Convention date. | Travel, lodging, and food expenses will be in addition to the registration fee, some of which will be discounted or subsidized by the Franchisor. |
| Interest | 2% per month compounded | Upon demand | Payable on all payments that are 15 or more days overdue. |
| Costs and Attorneys' Fees | Will vary under circumstances | As incurred | Payable upon termination of the Franchise Agreement, in an action to collect unpaid amounts owed to us and if we need to enforce the Franchise Agreement by injunctive relief. |
| Relocation Fee | Then-current fee Presently, $4,000 | As incurred | The Franchisor must approve any relocation of your Center and you must pay the Franchisor its then current relocation fee. As of the date of this Disclosure Document, the relocation fee is $4,000. |
| Indemnification | Will vary under circumstances | As incurred | You must reimburse us if we are held liable for claims arising from your operations and under certain circumstances set forth in the Application License Agreement. |
| Insufficient funds | $75 charge per incident We have the right to increase this fee in the future, but will not increase it to greater than the fee charged by our bank, plus 15%. | As incurred | Payable to Franchisor if an ACH transaction cannot be completed for any reason. |
| Renewal fee | $10,000 | Upon approval of renewal by Franchisor each time you renew. | Payab |
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees may be required to pay costs and attorneys' fees under specific circumstances. These fees, which will vary in amount, are payable upon the termination of the Franchise Agreement.
Additionally, Brain Balance may require franchisees to cover costs and attorneys' fees if the franchisor initiates legal action to collect unpaid amounts owed by the franchisee. This could include instances where a franchisee has failed to make royalty payments or other required payments outlined in the franchise agreement.
Furthermore, franchisees may be responsible for these fees if Brain Balance needs to enforce the Franchise Agreement through injunctive relief. Injunctive relief typically involves a court order that compels the franchisee to take specific actions or refrain from certain activities to comply with the terms of the agreement. Therefore, it is crucial for prospective franchisees to understand the terms of the Franchise Agreement and ensure compliance to avoid potential legal actions and associated costs.