During the term of the Brain Balance Agreement, can the franchisee or its stakeholders own or participate in any supplemental education services business not franchised by Brain Balance?

According to Brain Balance's 2025 Franchise Disclosure Document, franchisees and their stakeholders are restricted from engaging in supplemental education services or any business that competes with the Brain Balance franchised business. This restriction applies to the franchisee's officers, directors, shareholders, members, or partners. They cannot own, maintain, or have any interest in such businesses, whether directly or indirectly, individually or with others, in any capacity such as partner, stockholder, member, officer, director, employee, or representative.

This non-compete clause is a standard practice in franchising to protect the brand and the franchise system. It ensures that franchisees focus their efforts on the Brain Balance business and do not divert resources or knowledge to competing ventures. The clause aims to maintain the integrity and uniformity of the Brain Balance system across all franchise locations.

For a prospective Brain Balance franchisee, this means a commitment to exclusively operating and promoting the Brain Balance business. It is essential to understand the scope of 'supplemental education services' and 'competing business' as defined by Brain Balance to avoid any unintentional violations of the agreement. Franchisees should seek clarification from Brain Balance regarding any business activities they are considering outside of the franchise to ensure compliance with the franchise agreement.