If a Brain Balance franchisee is using hemispheric integration methodology, how does this affect the non-compete agreement?
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.
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, if a franchisee uses certain Brain Balance techniques involving hemispheric integration methodology or brain connectivity techniques, the franchisor will appropriately limit the applicability of the post-term non-competition provisions outlined in Section 18 of the Franchise Agreement. This suggests that the standard non-compete restrictions may be relaxed for franchisees utilizing these specific methodologies.
The standard non-compete agreement states that for one year after termination, expiration, or non-renewal of the franchise agreement, the franchisee cannot engage in the supplemental education services business within a 50-mile radius of their Brain Balance center. The FDD does not specify exactly how the non-compete agreement will be limited if the franchisee uses hemispheric integration methodology.
Prospective Brain Balance franchisees should seek clarification from the franchisor regarding the specific limitations that would apply to the non-compete agreement if they utilize hemispheric integration methodology. Understanding the extent of these limitations is crucial for assessing the franchisee's options and potential business activities after the franchise agreement ends.