According to the agreement, can I solicit clients of the Brain Balance company?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
cause, I agree that I shall not, directly or indirectly, in any capacity or on my own behalf or on behalf of any person or entity, solicit any clients, client contacts or employees of the Company.
- In the event of a breach of any of the covenants set forth in this Agreement, the running of the period of the restriction shall be tolled during the continuation of any such breach, and the running of the period of such restrictions shall commence only upon compliance with the terms of the applicable paragraph.
I agree that each of my agreements set forth is reasonable and necessary to protect and preserve the business, interests and properties of Company and in the event of a breach of any of my agreements, Company shall be entitled to both temporary and permanent injunctions to prevent a breach or contemplated breach of any of my agreements and the Company also retains the right to seek other relief, including damages, which shall be the greater of the amount of the financial loss which Company suffers as a result or the amount of the financial gain which I receive. I will pay Company's reasonable attorney's fees and costs involved in enforcing this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to the 2025 FDD, as part of the Confidentiality, Non-Solicitation, and Non-Compete Agreement with Brain Balance, franchisees are restricted from soliciting clients, client contacts, or employees of the company. This restriction applies both during the franchisee's association with Brain Balance and after the association ends, regardless of whether the separation is voluntary or for cause.
This non-solicitation clause is designed to protect Brain Balance's established client base, patronage, and goodwill. The agreement specifies that franchisees cannot directly or indirectly solicit any clients, client contacts, or employees, whether on their own behalf or for another entity.
Should a franchisee breach this agreement, the period of restriction will be extended for the duration of the breach, and legal remedies may be pursued. Brain Balance is entitled to seek temporary and permanent injunctions to prevent any breach or contemplated breach. Additionally, Brain Balance retains the right to seek damages, which will be the greater of the financial loss suffered by the company or the financial gain received by the franchisee as a result of the breach. The franchisee will also be responsible for covering Brain Balance's reasonable attorney's fees and costs associated with enforcing the agreement.
This type of clause is common in franchise agreements to protect the franchisor's business and customer relationships. Prospective Brain Balance franchisees should carefully review the terms of the Confidentiality, Non-Solicitation, and Non-Compete Agreement to fully understand the restrictions and potential consequences of violating the agreement.