factual

What is the geographic radius of the post-term non-compete restriction for a Brain Balance franchise?

Brain_Balance Franchise · 2025 FDD

Answer 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.

Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 51–53)

What This Means (2025 FDD)

According to the 2025 Brain Balance Franchise Disclosure Document, after the termination, expiration, or non-renewal of the Franchise Agreement, the franchisee is restricted from engaging in the supplemental education services business within a fifty (50) mile radius of their Brain Balance center for a period of one year. This restriction applies regardless of the reason for termination.

This non-compete clause means that a former Brain Balance franchisee cannot open a competing business or work for a competitor that offers similar supplemental education services within that 50-mile radius for one year. This is designed to protect Brain Balance's market share and prevent franchisees from using the knowledge and experience gained during their franchise term to directly compete against the brand shortly after leaving the system.

However, the FDD states that if the franchisee is currently using certain Brain Balance techniques involving hemispheric integration methodology, or brain connectivity techniques, Brain Balance will limit appropriately the applicability of the post-term non-competition provisions contained in Section 18 of the Franchise Agreement. This suggests that the franchisor may be willing to negotiate the terms of the non-compete agreement under certain circumstances. Prospective franchisees should seek clarification on what constitutes "limiting appropriately" the non-compete provisions and under what specific conditions this limitation would apply.

It is important for potential franchisees to fully understand the scope and enforceability of non-compete agreements, as they can significantly impact their ability to work in the same industry after leaving the franchise system. Franchisees should consult with an attorney to assess the reasonableness and potential impact of this restriction on their future business opportunities.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.