What is the purpose of the Confidentiality and Non-Competition Agreement required by Brain Balance, and who must sign it?
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)
According to the 2025 Brain Balance Franchise Disclosure Document, the purpose of the Confidentiality, Non-Solicitation, and Non-Compete Agreement is to protect Brain Balance's trade secrets, proprietary information, knowledge, and know-how. This agreement ensures that confidential business practices and information remain protected both during the term of the Franchise Agreement and after its termination.
The FDD specifies that all permanent staff of the franchised Brain Balance business must execute this agreement. This requirement extends beyond just the franchisee to include anyone employed in a long-term capacity at the Brain Balance center. The franchisee is responsible for ensuring that all permanent staff members comply with this requirement.
This type of agreement is common in franchising to safeguard the franchisor's business methods and protect against unfair competition. For a prospective Brain Balance franchisee, this means understanding the importance of maintaining confidentiality and ensuring that all permanent employees are legally bound to do the same. The franchisee must take the necessary steps to enforce this agreement to protect the Brain Balance system.