Who is subject to the non-compete and confidentiality restrictions outlined in the Brain Balance agreement?
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, all permanent staff of a franchised Brain Balance business are required to sign a Confidentiality, Non-Solicitation, and Non-Compete Agreement. This agreement is outlined in Exhibit 3 and further detailed in the Operations Manual.
This requirement means that as a Brain Balance franchisee, you must ensure that all your permanent employees execute this agreement. This is to protect Brain Balance's trade secrets and confidential information. The franchisee is responsible for taking necessary actions, both during the term of the Franchise Agreement and after its termination, to safeguard the company's proprietary information.
This is a fairly standard practice in franchising, particularly for businesses that rely on proprietary systems and methods. The non-compete and confidentiality agreements are designed to prevent employees from taking sensitive information to competitors or starting their own competing businesses. Prospective franchisees should carefully review Exhibit 3 and the relevant sections of the Operations Manual to fully understand the scope and terms of these restrictions.