During the term of the Brain Balance Agreement, can the franchisee or its officers have any interest in a supplemental education services business not franchised by Brain Balance?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
(d) Neither FRANCHISEE nor any of its officers, directors, shareholders, members, or partners own, maintain, or have any interest in or otherwise participate or engage in, either directly or indirectly, by itself or in conjunction with any other person or entity, any supplemental education services business or other business that competes with the Franchised business, whether as partner, stockholder, member, officer, director, employee, representative, or in any other capacity.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, franchisees and their officers are restricted from owning or participating in any supplemental education services business that competes with Brain Balance during the term of the franchise agreement. This restriction extends to officers, directors, shareholders, members, or partners of the franchisee.
This non-compete clause is fairly standard in franchising to protect the brand's market position and prevent franchisees from diverting resources or knowledge gained from the Brain Balance system to competing ventures. It ensures that the franchisee's focus remains solely on developing and operating their Brain Balance center.
For a prospective franchisee, this means they must be prepared to fully commit to the Brain Balance system and divest themselves of any conflicting business interests. It is important to carefully consider this restriction and its potential impact on other business activities or investments before entering into a franchise agreement with Brain Balance.