Upon termination of a Brain Balance franchise, what must the franchisee do with the Franchised Business's telephone number?

According to Brain Balance's 2025 Franchise Disclosure Document, upon termination of the franchise agreement, the franchisee must immediately stop using the Franchised Business's telephone number. Furthermore, at Brain Balance's option, the franchisee must transfer and assign the right to use the phone number to Brain Balance or its designee. The franchisee is also required to take any action necessary to transfer and assign all telephone numbers and white and yellow page telephone references and advertisements as outlined in the Conditional Assignment of Telephone Numbers, which is included as Exhibit 4 in the FDD.

This requirement ensures that Brain Balance maintains control over its brand identity and customer communication channels even after a franchise agreement ends. By reacquiring the telephone number, Brain Balance can seamlessly redirect customer inquiries to other locations or maintain a consistent presence in the local market. This is a fairly standard practice in franchising, as it protects the brand's reputation and prevents potential confusion among customers.

For a prospective franchisee, this means understanding that the phone number used for the Brain Balance center is not an asset they will retain upon termination. It is essential to factor this into any business valuation or exit strategy. Franchisees should also be aware of the obligations outlined in Exhibit 4, the Conditional Assignment of Telephone Numbers, to fully understand the process and requirements for transferring telephone-related assets back to Brain Balance.