Under what condition will the Brain Balance Franchise Agreement automatically terminate without notice to the Licensee?
Brain_Balance Franchise · 2025 FDDAnswer 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 Franchise Agreement and the License granted will automatically terminate without notice to the licensee if the Franchise Agreement itself is terminated. This means that if Brain Balance terminates the Franchise Agreement for any reason, the licensee's rights to operate under the license also cease immediately without any further notice required.
This condition is tied to the overall status of the Franchise Agreement. If the agreement is terminated, the license is automatically terminated as well. This clause underscores the importance of adhering to the terms and conditions of the Franchise Agreement to avoid termination, as any termination of the agreement directly results in the loss of the license.
For a prospective Brain Balance franchisee, this highlights the critical need to understand and comply with all aspects of the Franchise Agreement. Failure to do so could lead to termination of the agreement and, consequently, the automatic loss of the license to operate the franchise. Franchisees should seek legal counsel to fully understand their obligations and potential risks associated with the agreement.