For how long after the termination of a Brain Balance franchise agreement are franchisees restricted from engaging in the supplemental educational services business?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
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 engaging in 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. It prevents them from participating in a competing business in any capacity, whether as a partner, stockholder, officer, director, employee, or representative.
Furthermore, this restriction is limited geographically to a 50-mile radius of the former Brain Balance center. This means that after the franchise agreement ends, the franchisee and related parties cannot operate or be involved in a supplemental educational services business within that specified area for one year. This measure aims to protect Brain Balance's market and business interests by preventing former franchisees from directly competing in the same local area shortly after their departure.