Is a Brain Balance franchisee allowed to disclose trade secrets, even to their spouse?
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, franchisees must take action to protect the company's trade secrets. Specifically, paragraph 10.17(a) states that all permanent staff must execute a Confidentiality, Non-Solicitation, and Non-Compete Agreement. While the FDD does not explicitly forbid a franchisee from disclosing trade secrets to their spouse, it does state that the franchisee will take action to protect any trade secrets that are proprietary to Brain Balance or any information, knowledge, or know-how deemed confidential under the Franchise Agreement. The FDD does not provide details on what specific actions a franchisee must take.
Given this information, a prospective franchisee should clarify with Brain Balance what specific measures they must take to protect trade secrets. This is especially important if the franchisee intends to involve their spouse or other family members in the business. The Confidentiality, Non-Solicitation, and Non-Compete Agreement mentioned in the FDD is included as Exhibit 3 in the Operations Manual.
It is standard practice in franchising to protect trade secrets and confidential information. Franchise agreements typically include clauses that prevent franchisees from disclosing sensitive information to unauthorized parties. The Brain Balance franchise agreement appears to follow this practice by requiring confidentiality agreements for staff and obligating the franchisee to protect trade secrets. However, the absence of explicit restrictions on disclosing information to a spouse warrants further inquiry to fully understand the scope of confidentiality obligations.