What is the duration of the restriction preventing Brain Balance franchisees from employing individuals currently employed by the Brain Balance business after termination of 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, all permanent staff of a franchised business are required to execute a Confidentiality, Non-Solicitation, and Non-Compete Agreement, as detailed in the Operations Manual. The franchisee is obligated to take actions required by Brain Balance, both during the agreement and upon its termination, to protect trade secrets and confidential information.
The FDD does not specify the exact duration of the non-solicitation or non-compete agreements that Brain Balance franchisees must adhere to. The specifics of these restrictions, including the duration and scope, are detailed in Exhibit 3, the Confidentiality, Non-Solicitation, and Non-Compete Agreement, and within the Operations Manual, which all permanent staff must sign.
Prospective franchisees should carefully review Exhibit 3 and the Operations Manual to fully understand the terms of the non-solicitation and non-compete agreements. It is important to understand the length of time these restrictions are in place after the termination of the franchise agreement, as well as the geographic scope and specific activities that are prohibited. Understanding these details is crucial for planning future business activities and ensuring compliance with the franchise agreement.