Does the Brain Balance non-compete agreement prohibit franchisees from soliciting employees of the Brain Balance franchisor or other 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)
Based on the 2025 Brain Balance Franchise Disclosure Document, all permanent staff of a franchised business are required to sign a Confidentiality, Non-Solicitation, and Non-Compete Agreement, as detailed in the Operations Manual. The franchisee is obligated to take necessary actions to protect the company's trade secrets and confidential information, both during and after the termination of the Franchise Agreement.
However, the FDD excerpt does not explicitly state whether this non-solicitation agreement extends to preventing franchisees from soliciting employees of the Brain Balance franchisor or other franchisees. The document focuses on protecting the company's trade secrets and confidential information by requiring the franchisee's staff to sign a non-compete agreement.
To fully understand the scope of the non-solicitation clause, a prospective Brain Balance franchisee should review Exhibit 3 and the Operations Manual, and directly ask the franchisor about any restrictions on soliciting employees from the franchisor's corporate offices or from other Brain Balance franchise locations. This clarification is crucial to understanding the limitations a franchisee may face in recruiting experienced staff within the Brain Balance network.