factual

Under what circumstances will the Brain Balance License Agreement automatically terminate without notice to the Licensee?

Brain_Balance Franchise · 2025 FDD

Answer from 2025 FDD Document

6. Termination.

  • (a) Termination of Franchise Agreement. This Agreement and the License granted hereunder shall automatically terminate, without notice to Licensee, in the event the Franchise Agreement is terminated.

Source: Item 22 — CONTRACTS (FDD pages 70–72)

What This Means (2025 FDD)

According to Brain Balance's 2025 Franchise Disclosure Document, the License Agreement will automatically terminate without notice to the licensee if the Franchise Agreement is terminated. This means that the rights to use Brain Balance's software and related materials are directly tied to the underlying franchise agreement. If the franchise agreement ends for any reason, the licensee immediately loses the right to use the software.

This condition highlights the importance of maintaining a healthy franchise relationship with Brain Balance. Franchisees need to be aware that any actions leading to the termination of their Franchise Agreement will also result in the immediate loss of their software license. This could severely impact their ability to operate their Brain Balance center, as the software is likely integral to the services they provide.

Upon termination of the License Agreement, the franchisee must immediately stop using the software and all related materials. They are also required to either return or destroy all copies of the software, software materials, and any confidential information belonging to Brain Balance. Additionally, Brain Balance is obligated to return or destroy any confidential information belonging to the franchisee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.