How long after termination of the Franchise Agreement does the Confidentiality and Non-Compete Agreement prohibit competition with the Brain Balance franchised business?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of the Franchise Agreement and at all times thereafter, neither you nor any of your officers, directors, shareholders, members, or partners, as the case may be, may communicate, divulge, or use for the benefit of any other person, partnership, association, or corporation, any confidential information, knowledge, trade secrets, proprietary information, or private processes concerning the methods of operation of the Franchised Business that may be communicated to you or of which you may be apprised by virtue of your operation under the terms of the Franchise Agreement (including, but not limited to, confidential information, knowledge, trade secrets, proprietary information, or private processes and protocols obtained in the course of operating your Center or contained in the computer software and software manuals we provide you). Any and all confidential information, knowledge, trade secrets, proprietary information, or private processes that we designate as confidential will be deemed confidential for purposes of the Franchise Agreement.
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.
Throughout the term of the Franchise Agreement, and for a period of two (2) years after either the termination, regardless of the cause of the termination, expiration or non-renewal of the Franchise Agreement, neither you, nor any of your officers, directors, shareholders, members or partners, as appropriate, shall directly or indirectly employ, seek to employ, or attempt to employ any person employed by BBF or any of its Franchisees or affiliates or otherwise directly or indirectly induce such persons to leave their employment.
Throughout the term of the Franchise Agreement, and for a period of one (1) year after either termination – regardless of the cause of the termination – expiration, or non-renewal, neither you nor any of your officers, directors, shareholders, members, or partners, as appropriate, shall divert or attempt to divert, any business of, or any clients of, the Franchised Business or any other Franchisee or affiliate of BBF to any other competitive establishment, by direct or indirect inducement or otherwise.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD page 53)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees are subject to both confidentiality and non-compete obligations. The confidentiality obligations extend indefinitely, while the non-compete has specific time and geographic limitations.
The standard non-compete agreement restricts involvement in a supplemental education services business within a 50-mile radius of the Brain Balance center for one year after termination, expiration, or non-renewal of the franchise agreement. This applies to the franchisee, their officers, directors, shareholders, members, or partners. However, if the franchisee uses specific 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.
In addition to the non-compete, for two years after termination, expiration, or non-renewal of the Franchise Agreement, franchisees are prohibited from soliciting or employing anyone employed by Brain Balance or its franchisees or affiliates. This prevents franchisees from poaching staff to work in a competing business. Franchisees are also prohibited for one year after termination from diverting or attempting to divert any business or clients of the franchised business or any other Brain Balance franchisee or affiliate to any other competitive establishment.