What is included in the definition of 'trade secrets or confidential data' for a Brain Balance franchise?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
- (h) Not disclose to any person, firm, or corporation any of the trade secrets or confidential data furnished to FRANCHISEE by COMPANY, it being agreed that the term "trade secrets or confidential data" shall mean information communicated to FRANCHISEE b
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, franchisees must protect the trade secrets and confidential data provided by Brain Balance. The term "trade secrets or confidential data" includes information communicated to the franchisee by Brain Balance. This obligation extends both during the term of the Franchise Agreement and after its termination.
This means that franchisees are entrusted with proprietary information critical to the Brain Balance system. They are legally bound to safeguard this information and prevent its unauthorized disclosure or use. This protection extends to all permanent staff, who must sign a Confidentiality, Non-Solicitation, and Non-Compete Agreement.
For a prospective franchisee, this underscores the importance of understanding what constitutes confidential information and implementing measures to protect it. Failure to do so could result in legal repercussions and damage to the Brain Balance brand. Franchisees should seek clarification from Brain Balance regarding the specific types of information considered trade secrets or confidential data to ensure compliance.