Under what conditions related to payments or agreement violations can a Brain Balance franchisee be in default?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
Affiliates and subsidiaries). For purposes of this section 17.01(h), Affiliate shall refer to any person or entity controlling, controlled by, or under common control with the subject person or entity.
17.02. It shall be an event of default ("Event of Default") if:
- (a) FRANCHISEE fails to make any payment, when due, required by the terms of this Agreement or any other agreement between COMPANY and FRANCHISEE, or violates any other term, provision, or condition of this Agreement or any other agreement between COMPANY and FRANCHISEE, and such failure or violation continues for more than fifteen (15) days (or such longer period as may be required by law) after notice from COMPANY to FRANCHISEE;
- (b) a judgment is obtained against FRANCHISEE and is not satisfied or bonded within fifteen (15) days after entry thereof;
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, there are several conditions that could lead to a franchisee being in default of their agreement. Specifically, a franchisee will be in default if they fail to make payments when due as required by the franchise agreement or any other agreement with Brain Balance, and this failure continues for more than fifteen days after receiving notice from the company. This includes not only the standard franchise fees but also any other financial obligations outlined in any agreement with Brain Balance.
Beyond payment issues, a Brain Balance franchisee can be in default if they violate any term, provision, or condition of the franchise agreement or any other agreement with the company, and this violation continues for more than fifteen days after notice. This broad clause covers a wide range of potential breaches, making it crucial for franchisees to thoroughly understand and adhere to all aspects of their contractual obligations.
Additionally, a franchisee will be in default if they breach any of the terms or conditions of the Software Agreement or if they breach any agreements with designated suppliers for the purchase of equipment, advertising materials, services, or other required supplies. These specific mentions highlight the importance Brain Balance places on franchisees adhering to the standards and systems it has put in place. Failing to meet these obligations can have significant consequences, including potential termination of the franchise agreement.