Under what conditions can a term of the Brain Balance franchise agreement be waived, modified, or canceled?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
(j) FRANCHISEE is in breach of any of the terms or conditions of the Software Agreement;
(k) FRANCHISEE is in breach of any of the agreements with supplier(s) designated by COMPANY for purchase of equipment, advertising materials, services or other supplies, products, and materials required for the operation of the Franchised Business; or
(l) FRANCHISEE abandons, fails to renew, or otherwise loses the right to operate or stops operating the Standard Brain Balance Center and fails to convert the Franchised Business into a standard Brain Balance Center within a period of 30 days from the date of non-operation of the Standard Brain Balance Center.
17.03. (a) Upon the occurrence of an Event of Default, COMPANY, at its option, may terminate this Agreement on five (5) days' written notice (or a notice for a longer period of time as may be required by the law of the jurisdiction in which FRANCHISEE's Center is located) without a right to cure, and this Agreement, together with the Franchise granted hereunder, shall thereupon expire.
(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.
- 17.04.
Upon the termination of this Agreement, whether as a result of an Event of Default or for any other reason, FRANCHISEE shall:
- (a) Cease to be a FRANCHISEE, cease to operate the Franchised Business, and refrain and desist from using the names and Marks and all other marks, trade names, trademarks, or logos of COMPANY, or such names or logos similar thereto, in any manner whatsoever, including, without limitation, together with other words such as "formerly known as."
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, the franchise agreement can be terminated by Brain Balance if the franchisee is in breach of the Software Agreement or any agreements with designated suppliers for equipment, advertising materials, services, or other required supplies. Additionally, Brain Balance can terminate the agreement if the franchisee abandons, fails to renew, or loses the right to operate the Standard Brain Balance Center and fails to convert the franchised business into a standard Brain Balance Center within 30 days of non-operation.
Specifically, if an Event of Default occurs, Brain Balance has the option to terminate the agreement with only five days' written notice, without providing an opportunity for the franchisee to correct the issue, although the notice period may be longer if required by local law. If the Event of Default continues for 30 or more days after Brain Balance notifies the franchisee, Brain Balance can cease providing services and benefits until the franchisee pays all outstanding fees, files required reports, and corrects all other defaults.
Upon termination of the agreement, the franchisee must cease operating the franchised business and discontinue using Brain Balance's names, marks, and logos. These terms highlight the importance of adhering to the franchise agreement and maintaining good standing with Brain Balance and its designated suppliers to avoid potential termination and loss of the franchise.