For how long after the termination of a Brain Balance Franchise Agreement are franchisees prohibited from employing individuals employed by BBF or its franchisees?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 51–53)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, a franchisee is restricted from employing, seeking to employ, or attempting to employ any person employed by BBF or any of its franchisees for a period of two years after the termination, regardless of the cause, expiration, or non-renewal of the Franchise Agreement. This restriction also applies to the franchisee's officers, directors, shareholders, members, or partners.
This non-employment clause prevents a former Brain Balance franchisee from poaching employees from the franchisor or other franchisees, which could disrupt the Brain Balance network. It protects the investment Brain Balance and its franchisees make in training their staff. This type of clause is relatively common in franchise agreements to maintain stability and prevent unfair competition within the system.
For a prospective Brain Balance franchisee, this means that after leaving the system, they cannot hire anyone who works for Brain Balance or any of its other franchisees for two years. This could limit their ability to quickly staff a similar business venture if they choose to open one. It is important to consider this restriction when planning for the future after the franchise agreement ends.