For how long after termination of the Brain Balance agreement are franchisees prohibited from entering the supplemental educational services business?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.04. For a period of one (1) year after the termination of this Agreement, regardless of the cause of termination, expiration, or non-renewal, neither FRANCHISEE nor any of its officers, directors, shareholders, members, or partners shall enter into the supplemental educational services business, or engage in other related activities, whether as a partner, stockholder, officer, director, employee, representative, or in any other capacity within a fifty (50) mile radius of the Center.
- 18.05. FRANCHISEE acknowledges that the covenants not to compete set forth in this Agreement are fair and reasonable and will not impose any undue hardship on FRANCHISEE, since FRANCHISEE has other considerable skills, experience, and education that afford FRANCHISEE the opportunity to derive income from other endeavors.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, a franchisee is restricted from entering the supplemental educational services business for one year after the termination of the Franchise Agreement. This restriction applies regardless of the reason for termination, expiration, or non-renewal of the agreement.
This non-compete clause extends not only to the franchisee but also to their officers, directors, shareholders, members, or partners. The restriction covers involvement in the supplemental educational services business in any capacity, including as a partner, stockholder, officer, director, employee, or representative.
Furthermore, this restriction is limited to a fifty (50) mile radius of the Brain Balance center. Brain Balance also states that these non-compete terms are considered fair and reasonable, given the franchisee's other skills and opportunities for income from other ventures.