What agreement must all permanent staff of a Brain Balance franchised business execute?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.17. (a) All permanent staff of the Franchised Business shall execute Exhibit 3, the Confidentiality, Non-Solicitation, and Non-Compete Agreement as provided in the Operations Manual.
FRANCHISEE will take such action in connection therewith as may be required by COMPANY both during and upon termination of this Agreement in order to protect any trade secrets that are proprietary to COMPANY or any information, knowledge, or know-how deemed confidential under this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, all permanent staff of a Brain Balance franchised business must execute Exhibit 3, which is the Confidentiality, Non-Solicitation, and Non-Compete Agreement as provided in the Operations Manual. The franchisee is obligated to take necessary actions to protect the company's trade secrets and confidential information, both during and after the termination of the franchise agreement.
This requirement ensures that sensitive business information, trade secrets, and client data remain protected. By having all permanent staff sign this agreement, Brain Balance aims to prevent the unauthorized disclosure of confidential information, solicitation of employees or clients, and competition from former employees. This is a standard practice in franchising to safeguard the brand's competitive advantage and protect the franchisor's and other franchisees' interests.
The franchisee is responsible for ensuring that all permanent staff members execute this agreement. The Operations Manual provides the specific terms and conditions of the agreement. Franchisees should carefully review the agreement with their staff to ensure they understand their obligations. This requirement is in place to protect Brain Balance's proprietary information and maintain the integrity of the franchise system.
It is important for prospective franchisees to understand the implications of this requirement. They will need to incorporate the execution of this agreement into their hiring and onboarding processes for all permanent staff. Failure to comply with this requirement could result in a breach of the franchise agreement and potential legal consequences.