Does the non-compete agreement with Brain Balance apply if I voluntarily terminate my association?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
belongs to Company if it relates to Company's business. If any such development or creation occurs during my employment or up to one year after I leave Company, I will promptly disclose and explain it and assign to Company all rights I may have in it without additional compensation.
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- During the term of my association with the Company and for a period of one year after termination of my association with the Company either (i) voluntarily by me or (ii) for cause, I agree that I shall not directly or indirectly, whether as employee, owner, partner, stockholder, member, investor, agent or consultant, render competing services on my own behalf or on behalf of any person or entity other than the Company.
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the non-compete agreement applies if you voluntarily terminate your association with the company. Specifically, during the term of your association with Brain Balance and for one year after termination, whether voluntary or for cause, you are restricted from rendering competing services. This restriction applies whether you act as an employee, owner, partner, stockholder, member, investor, agent, or consultant on behalf of yourself or any entity other than Brain Balance.
This non-compete clause also includes a geographic limitation. For a period of one year after termination of your association with Brain Balance, whether the termination is voluntary or for cause, you are prohibited from rendering competing services within a thirty-five (35) mile radius of the company's office located at a specified address. The exact address is not provided in the excerpt, but it is something a prospective franchisee should confirm.
This means that if you decide to voluntarily leave the Brain Balance franchise system, you will be legally bound to refrain from engaging in any competitive business activities within the specified geographic area for one year. This could significantly limit your professional options and should be carefully considered before signing the franchise agreement. It is advisable to seek legal counsel to fully understand the implications of this non-compete agreement and to negotiate its terms if possible.