For how long after termination of the Brain Balance franchise agreement are franchisees prohibited from soliciting or employing individuals employed by the company or its franchisees?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.17. (a) All permanent staff of the Franchised Business shall execute Exhibit 3, the Confidentiality, Non-Solicitation, and Non-Compete Agreement as provided in the Operations Manual.
FRANCHISEE will take such action in connection therewith as may be required by COMPANY both during and upon termination of this Agreement in order to protect any trade secrets that are proprietary to COMPANY or any information, knowledge, or know-how deemed confidential under this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
I am unable to provide the exact duration of the post-termination non-solicitation or non-employment period for Brain Balance franchisees, according to the 2025 Franchise Disclosure Document excerpts provided. While the FDD mentions a Confidentiality, Non-Solicitation, and Non-Compete Agreement that all permanent staff must execute, it does not specify the length of time these restrictions are in place after the franchise agreement is terminated.
Item 10.17(a) states that all permanent staff must sign this agreement, indicating that non-solicitation and non-compete obligations are part of the franchise terms. However, the absence of specific details regarding the duration of these restrictions post-termination means prospective franchisees need to seek clarification on this point.
To fully understand the obligations, a prospective Brain Balance franchisee should ask the franchisor for a copy of 'Exhibit 3, the Confidentiality, Non-Solicitation, and Non-Compete Agreement' and clarify the exact length of the restricted period. Understanding the duration of these post-termination obligations is crucial for assessing the long-term implications of the franchise agreement.