Does the Brain Balance agreement restrict franchisees from inducing employees of other Brain Balance franchisees to leave their employment?
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, permanent staff must sign a Confidentiality, Non-Solicitation, and Non-Compete Agreement. Specifically, section 10.17(a) of Item 22 states that all permanent staff of the franchised business must execute Exhibit 3, which is the Confidentiality, Non-Solicitation, and Non-Compete Agreement as provided in the Operations Manual.
This agreement is designed to protect Brain Balance's trade secrets and confidential information. The franchisee is obligated to take actions required by Brain Balance to protect these trade secrets and confidential information both during and after the termination of the franchise agreement.
While the FDD excerpt confirms the existence of a non-solicitation agreement for employees, it does not explicitly state whether this agreement prevents a franchisee from soliciting or hiring employees from other Brain Balance locations. A prospective franchisee should review Exhibit 3, the Confidentiality, Non-Solicitation, and Non-Compete Agreement, within the Operations Manual to fully understand the scope of these restrictions and how they might impact their ability to recruit experienced staff within the Brain Balance network.