After the Brain Balance franchise agreement terminates, what are franchisees prohibited from doing with confidential information related to the Brain Balance business?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
Balance®," or "Brain Balance Program®," or any of the Marks in connection with any purpose or service other than the operation of a Brain Balance® Center to the extent specifically permitted hereunder.
- 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.
- (b) FRANCHISEE or its principal must have satisfactorily completed the Initial Training Program.
- 10.18. (a) FRANCHISEE's proposed Center location, relocation, center layout, office equipment, all printed matter used in the operation of the Franchised Business, including without limitation, assessment tools, tests, evaluation forms, stationery, signage, application forms, business cards, invoices, statements, and other materials, and the manner in which any and of these will be used are subject to the prior written consent of COMPANY and must comply with the Operations Manual.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, franchisees must take specific actions to protect the company's confidential information both during and after the termination of the franchise agreement. Specifically, franchisees are required to protect trade secrets and any information, knowledge, or know-how deemed confidential under the agreement. This obligation extends to actions required by Brain Balance to safeguard proprietary information.
Upon termination of the agreement, franchisees must also deliver specific items to Brain Balance within ten days. These include all files and records related to client services, research and development data provided or maintained through the Brain Balance system, and all records, lists, and information concerning client accounts, prospective clients, and employees. Additionally, franchisees must hand over all other information maintained, whether in written or electronic form, pertaining to clients, prospective clients, and employees. All copies of Brain Balance's Operations Manual, video tapes, and other materials bearing the company's marks or belonging to Brain Balance must also be returned.
These measures ensure that confidential business information, client data, and proprietary materials remain protected and are not used to the detriment of Brain Balance after a franchise agreement ends. This is a standard practice in franchising to maintain brand consistency and protect the franchisor's intellectual property and business methods.