Does Brain Balance acknowledge that the non-compete covenants are fair and reasonable?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
the American Arbitration Association, attorneys, and accountants. Judgment upon any award of the arbitrator(s) shall be conclusive and binding and shall be entered in a court of competent jurisdiction.
20.02. FRANCHISEE acknowledges that its franchise is one of a number of Brain Balance® Centers using COMPANY's service marks and style of conduct and that the failure on
the part of FRANCHISEE to comply with any of the terms of this Agreement could cause irreparable damage to some or all of the other offices franchised or operated by COMPANY and to COMPANY's business. Therefore, and notwithstanding the provisions contained in Paragraph 20.01 above, FRANCHISEE agrees that upon the happening of any Non-Curable Default or Event of Default set forth in Section 17.01 or 17.02, or in the event of a threatened breach by FRANCHISEE of any of the terms of this Agreement, COMPANY shall have the immediate right to secure a court order enjoining any such default or threatened breach. If this Agreement shall have been terminated, FRANCHISEE may be enjoined from any continued operation of any Center franchised under this Agreement and/or the Franchised Business. This covenant shall be independent and severable and shall be enforceable notwithstanding any other rights or remedies that either party may have.
20.03. Each right or remedy granted to COMPANY by this Agreement is cumulative of all other rights or remedies given by this Agreement or by law or equity.
- 20.04.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, franchisees acknowledge that their franchise is one of many Brain Balance centers utilizing the company's service marks and operational methods. The FDD states that failure to comply with the terms of the agreement could cause irreparable damage to other Brain Balance centers and the company's business.
Specifically, the Brain Balance franchise agreement states that franchisees agree that upon the occurrence of any Non-Curable Default or Event of Default, or in the event of a threatened breach of the agreement, Brain Balance has the immediate right to seek a court order to stop any such default or threatened breach. If the Franchise Agreement is terminated, the franchisee can be prevented from continuing to operate any center franchised under the agreement or the franchised business.
Furthermore, the Brain Balance agreement specifies that all permanent staff of the franchised business must execute a Confidentiality, Non-Solicitation, and Non-Compete Agreement as provided in the Operations Manual. The franchisee is obligated to take necessary actions to protect trade secrets and confidential information, both during and after the termination of the agreement. This indicates that Brain Balance places significant emphasis on protecting its business model, trade secrets, and brand reputation through non-compete and confidentiality measures.