After the Brain Balance Franchise Agreement terminates, how long does the non-compete agreement last?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
Throughout the term of the Franchise Agreement, and for a period of one year after either termination –regardless of cause of the termination – expiration, or non-renewal, neither you nor any of your officers, directors, shareholders, members, or partners, as appropriate, shall engage in the supplemental education services business within a fifty (50) mile radius of your Center. To the extent you are currently using certain Brain Balance® techniques involving hemispheric integration methodology, or brain connectivity techniques, we will limit appropriately the applicability of the post-term non-competition provisions contained in Section 18 of the Franchise Agreement.
Throughout the term of the Franchise Agreement, and for a period of two (2) years after either the termination, regardless of the cause of the termination, expiration or non-renewal of the Franchise Agreement, neither you, nor any of your officers, directors, shareholders, members or partners, as appropriate, shall directly or indirectly employ, seek to employ, or attempt to employ any person employed by BBF or any of its Franchisees or affiliates or otherwise directly or indirectly induce such persons to leave their employment.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 51–53)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the non-compete agreement has two components. The first part restricts a franchisee from engaging in the supplemental education services business within a 50-mile radius of their Brain Balance center for one year after the termination, expiration, or non-renewal of the Franchise Agreement, regardless of the cause of termination. However, this restriction may be limited if the franchisee uses specific Brain Balance techniques involving hemispheric integration methodology or brain connectivity techniques.
In addition to the geographic and business activity restriction, Brain Balance also prohibits franchisees from soliciting or employing any person employed by BBF or any of its franchisees or affiliates for a period of two years after the termination, expiration, or non-renewal of the Franchise Agreement. This includes directly or indirectly inducing such persons to leave their employment.
These non-compete clauses are fairly standard in franchising to protect the franchisor's business model, trade secrets, and employee base. Prospective Brain Balance franchisees should carefully consider the implications of these restrictions, particularly the geographic radius and the duration, as they could impact their future business opportunities should they decide to leave the Brain Balance system. It is important to understand the specific limitations that may apply if certain Brain Balance techniques are utilized.