Who is included in the definition of parties restricted by the non-compete agreement after termination of the Brain Balance franchise agreement?
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 the 2025 Brain Balance Franchise Disclosure Document, all permanent staff of the franchised business are required to execute a Confidentiality, Non-Solicitation, and Non-Compete Agreement, as detailed in Exhibit 3 and the Operations Manual. The franchisee is responsible for ensuring that all permanent staff members comply with this requirement, both during the term of the agreement and upon its termination.
This means that upon termination of the franchise agreement, not only is the franchisee restricted by the non-compete agreement, but also all of their permanent staff. The franchisee must take necessary actions to protect Brain Balance's trade secrets and confidential information, ensuring that neither they nor their staff engage in activities that violate the non-compete terms.
Prospective franchisees should carefully review Exhibit 3 and the Operations Manual to fully understand the scope and terms of the non-compete agreement. It is important to understand the specific restrictions placed on both the franchisee and their staff to avoid potential legal issues after the franchise agreement ends. Franchisees should also consult with legal counsel to ensure they fully understand their obligations and the implications of the non-compete agreement.