Which sections of the Brain Balance agreements detail the non-competition covenants that a franchisee must adhere to?

According to Brain Balance's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, including non-competition covenants. Specifically, the non-competition covenants are detailed in Section 18 of the Application License Agreement and Section 1(b). Further details regarding these covenants are disclosed in Item 17 of the FDD.

This means that as a Brain Balance franchisee, you are bound by certain restrictions both during the term of your franchise agreement and after its termination or expiration. These restrictions are designed to protect Brain Balance's business and brand by preventing franchisees from engaging in competitive activities that could harm the franchise system.

Prospective franchisees should carefully review Section 18 and Section 1(b) of the Application License Agreement, along with Item 17 of the FDD, to fully understand the scope and limitations of the non-competition covenants. This includes understanding the geographic area covered by the covenants, the types of activities that are prohibited, and the duration of the restrictions. It is also important to understand the potential consequences of violating these covenants, which could include legal action and financial penalties.

Understanding these obligations is crucial before investing in a Brain Balance franchise to ensure you are comfortable with the restrictions and can comply with them. It is advisable to seek legal counsel to review these sections and understand their implications fully.