For how long after termination of the Brain Balance agreement are franchisees restricted 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.
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 prevents the franchisee, including their officers, directors, shareholders, members, or partners, from engaging in the supplemental educational services business or related activities. The restriction applies if they act as a partner, stockholder, officer, director, employee, representative, or in any other capacity.
Furthermore, this restriction is limited to a 50-mile radius of the Brain Balance center. This means that after the agreement ends, the franchisee can operate a similar business outside this radius or wait until the one-year period expires to operate within the specified area. This clause aims to protect Brain Balance's market and confidential information while allowing the franchisee to pursue other opportunities after leaving the franchise system.