What is the consequence of violating the confidentiality agreement with Brain Balance during or after my association?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
ense Agreement), and other knowhow, developed during my engagement with the Company or used in connection with the Company's business unless known by me prior to my engagement with the Company in which case such information shall not be considered confidential or proprietary information. I agree to surrender all such confidential and proprietary material and any copies thereof to Company upon the termination of my employment other than for use in connection with authorized work I perform for the Company.
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- Any new idea, invention, improvement or copyrightable work I create, develop or help develop while employed by Company belongs to Company if it relates to Company's business. If any such development or creation occurs during my employment or up to one year after I leave Company, I will promptly disclose and explain it and assign to Company all rights I may have in it without additional compensation.
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- During the term of my association with the Company and for a period of one year after termination of my association with the Company either (i) voluntarily by me or (ii) for cause, I agree that I shall not directly or indirectly, whether as employee, owner, partner, stockholder, member, investor, agent or consultant, render competing services on my own behalf or on behalf of any person or entity other than the Company. During the term of my association with the Company and for a period of one year after termination of my association with the Company either (i) voluntarily by me or (ii) for cause, I agree that I shall not directly or indirectly, whether as employee, owner, partner, stockholder, member, investor, agent or consultant, render competing services on my own behalf or on behalf of any person or entity other than the Company for twelve (12) months in any area within a thirty-five (35) mile radius of the Company's office located at __________________.
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Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, as part of the Confidentiality, Non-Solicitation, and Non-Compete Agreement, franchisees agree not to use, disclose, copy, retain, or remove any confidential or proprietary information or trade secrets during or after their association with the company. This includes ideas, methods, protocols, procedures, techniques, written material, and other know-how developed during their engagement, unless the information was already known to them prior to their involvement with Brain Balance. Upon termination, franchisees must surrender all confidential and proprietary material and any copies, except for use in authorized work for the company.
Additionally, any new idea, invention, improvement, or copyrightable work created or developed during employment related to Brain Balance's business belongs to the company. Franchisees are required to promptly disclose and assign all rights to such developments to the company, even up to one year after leaving, without additional compensation.
Furthermore, for one year after termination, franchisees cannot directly or indirectly render competing services, whether as an employee, owner, partner, stockholder, member, investor, agent, or consultant, on behalf of themselves or any other entity. This restriction applies within a thirty-five (35) mile radius of the Brain Balance office. These measures are in place to protect Brain Balance's confidential information, trade secrets, and competitive advantage, and failure to comply could result in legal action and financial penalties.