Under what conditions can Brain Balance suspend services to a franchisee?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Upon the occurrence of an Event of Default that continues for thirty (30) or more days of COMPANY giving FRANCHISE notice of such default, COMPANY shall have the absolute right without additional notice, to cease providing or making available any or all services and benefits provided for hereunder to FRANCHISEE until FRANCHISEE is current in the payment of fees and the filing of reports and has cured all other defaults.
COMPANY's exercise of such right shall not diminish FRANCHISEE's continuing obligations under this Agreement or constitute an actual or constructive termination of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, Brain Balance can cease providing services and benefits to a franchisee if an Event of Default occurs and continues for 30 or more days after Brain Balance provides notice of the default. This suspension can occur without additional notice from Brain Balance.
During this suspension, Brain Balance will cease providing any or all services and benefits outlined in the franchise agreement. However, this action does not relieve the franchisee of their ongoing obligations under the agreement, nor does it constitute a termination of the agreement.
The suspension of services will continue until the franchisee becomes current in their payment of fees, properly files all required reports, and cures all other defaults. This means the franchisee must rectify all outstanding issues to Brain Balance's satisfaction to have their services reinstated. This clause protects Brain Balance from franchisees who are non-compliant while ensuring the agreement remains in effect, allowing for eventual correction and continuation of the franchise.