Is the covenant not to compete in the Brain Balance Franchise Agreement, which extends beyond termination, always enforceable under California law?

According to the 2025 Brain Balance Franchise Disclosure Document, the enforceability of the covenant not to compete, which extends beyond the termination of the franchise agreement, is not guaranteed under California law. Specifically, the California Addendum to the Franchise Agreement addresses this issue.

This means that if a Brain Balance franchisee operates in California, the standard non-compete clause in the franchise agreement may not be fully enforceable. California law has specific rules and limitations regarding non-compete agreements, especially those that extend beyond the termination of a franchise relationship.

Prospective franchisees should seek legal counsel to understand the specific implications of California law on the non-compete clause in the Brain Balance Franchise Agreement. This is particularly important for franchisees planning to operate in California, as the enforceability of this clause can significantly impact their future business activities after the franchise agreement ends.