Under what conditions can a Brain Balance franchisee terminate the franchise agreement?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement (or Satellite Franchise Agreement, if different) | Summary | |
|---|---|---|---|
| d. | Termination by You | 4.03 | Franchisee may terminate for any grounds permitted by law. Franchisee does not have the right to terminate prior to the end of the 10 year term for convenience. |
Note 1: The provisions in the Franchise Agreement that provide for termination upon your filing for bankruptcy may not be enforceable under federal bankruptcy law (11 U.S.C., et seq.)
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 54–61)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, a franchisee can terminate the franchise agreement under specific conditions. The franchisee has the right to terminate the agreement for any reasons permitted by law. However, the franchisee does not have the right to terminate the agreement for convenience before the end of the 10-year term.
This means that while a Brain Balance franchisee isn't locked in without recourse, simply changing their mind or finding the business unprofitable before the term expires isn't sufficient grounds for early termination. The franchisee would need a legal basis for ending the agreement prematurely.
It is important to note that the FDD also states that provisions allowing termination upon filing for bankruptcy may not be enforceable under federal bankruptcy law. This suggests that the legal landscape surrounding franchise termination can be complex, and franchisees should seek legal counsel if they are considering terminating their agreement.