Does the restriction on employing individuals after termination of a Brain Balance Franchise Agreement apply regardless of the cause of termination?

According to Brain Balance's 2025 Franchise Disclosure Document, the restriction on employing individuals after the termination of a Franchise Agreement applies regardless of the reason for termination. Specifically, for a period of two years after termination, expiration, or non-renewal of the Franchise Agreement, the franchisee (or their officers, directors, shareholders, members, or partners) cannot directly or indirectly employ, seek to employ, or attempt to employ any person employed by Brain Balance or any of its franchisees or affiliates. Furthermore, they cannot indirectly induce such persons to leave their employment. This restriction applies irrespective of whether the termination was due to the franchisee's decision, Brain Balance's decision, or the natural expiration of the agreement.

This provision is designed to protect Brain Balance's network by preventing franchisees from poaching employees who have been trained in the Brain Balance methods and procedures. It ensures that franchisees who leave the system, whether voluntarily or involuntarily, do not gain an unfair competitive advantage by hiring staff away from existing Brain Balance centers. The two-year restriction period is intended to provide Brain Balance and its franchisees with sufficient time to replace any employees who may leave to join a former franchisee's new venture.

For a prospective Brain Balance franchisee, this means that upon exiting the franchise system, they will be unable to hire any employees from Brain Balance or its other franchisees for two years. This could limit their ability to staff a new, potentially competing business with experienced personnel. It is important for potential franchisees to consider this restriction carefully, especially if they anticipate a future scenario where they might want to operate a similar business independently after leaving the Brain Balance system. They should factor in the cost and time required to train a new staff without relying on existing Brain Balance employees.