Does the one-year non-compete agreement with Brain Balance apply if my association is terminated for cause?
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 one-year non-compete agreement applies even if your association with the company is terminated for cause. The agreement states that during the term of your association and for one year after termination, whether voluntary or for cause, you cannot directly or indirectly render competing services. This restriction applies to various roles, including employee, owner, partner, stockholder, member, investor, agent, or consultant.
This means that if Brain Balance terminates your franchise agreement due to a breach on your part, you are still bound by the non-compete clause. You will be unable to engage in any competing business within the specified terms for one year following the termination. This restriction is further defined to include not competing within a thirty-five (35) mile radius of the Company's office.
This non-compete agreement is a significant restriction for prospective Brain Balance franchisees. It limits their ability to work in a related field for a year after leaving the franchise, regardless of the circumstances of their departure. Franchisees should carefully consider this restriction and how it might affect their future career options before investing in a Brain Balance franchise. It is advisable to seek legal counsel to fully understand the implications of this clause.