Besides the franchisee, which other parties are prohibited from diverting Brain Balance business to a competitive establishment?
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 the franchised business are required to sign a Confidentiality, Non-Solicitation, and Non-Compete Agreement, as detailed in Exhibit 3 of the Operations Manual. This agreement is designed to protect Brain Balance's trade secrets and confidential information.
This measure ensures that individuals working within a Brain Balance center are legally bound to protect the company's interests, preventing them from using proprietary knowledge or relationships to benefit a competing business. The franchisee is responsible for ensuring that all permanent staff members execute this agreement, both during their employment and after termination, to safeguard confidential information.
For a prospective franchisee, this means understanding the importance of enforcing these agreements to maintain the integrity of the Brain Balance system. It also highlights the need to be diligent in protecting confidential information and trade secrets, as the success of the franchise relies on maintaining a competitive edge through its unique methods and knowledge.