What is the duration of the non-compete period for Brain Balance franchisees after the termination of the franchise agreement?

According to Brain Balance's 2025 Franchise Disclosure Document, franchisees are subject to a non-compete agreement both during the term of the franchise agreement and after its termination. Specifically, for a period of two years after the termination, expiration, or non-renewal of the franchise agreement, the franchisee (including its officers, directors, shareholders, members, or partners) is restricted from engaging in any competitive activities. This restriction applies regardless of the reason for termination.

This means that for 24 months following the end of their franchise agreement, a former Brain Balance franchisee cannot own, maintain, have interest in, or participate in any supplemental education services business, unless that business is also franchised by Brain Balance. This includes activities as a partner, stockholder, member, officer, director, employee, or representative.

The non-compete clause also prevents the franchisee from diverting or attempting to divert any business or clients from Brain Balance to any other competitive establishment through direct or indirect means. This is a standard practice in franchising to protect the franchisor's brand, customer base, and proprietary information. Prospective franchisees should carefully consider the implications of this restriction on their future business endeavors before entering into a franchise agreement with Brain Balance.