What constitutes confidential information for Brain Balance franchisees under the franchise agreement?
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 Brain Balance's 2025 Franchise Disclosure Document, the franchise agreement emphasizes the protection of trade secrets and confidential information. Specifically, all permanent staff of a Brain Balance franchised business are required to sign a Confidentiality, Non-Solicitation, and Non-Compete Agreement, as detailed in the Operations Manual. This agreement ensures that employees understand their obligations regarding confidential information. The franchisee is responsible for taking necessary actions, both during the term of the agreement and upon its termination, to safeguard Brain Balance's proprietary trade secrets, information, knowledge, and know-how that are deemed confidential under the franchise agreement.
Furthermore, the Brain Balance System itself, including its training methods, methodology, protocols, licensed technology, promotional programs, uniform standards, and the confidential Operations Manual, are considered confidential. The Operations Manual contains crucial information that benefits the operation of the Brain Balance business. Franchisees acknowledge that operating the business according to the Brain Balance System and using the associated marks builds valuable goodwill among the public.
In practical terms, a Brain Balance franchisee must ensure that their staff understands and adheres to the confidentiality agreement to protect Brain Balance's sensitive business information. This includes preventing unauthorized access to the Operations Manual and refraining from disclosing any confidential information to third parties. The franchisee must also take steps to protect the confidentiality of the Licensed Technology and other proprietary aspects of the Brain Balance program. Failure to comply with these confidentiality requirements could lead to legal repercussions and damage the Brain Balance brand's reputation.