After termination of the Brain Balance agreement, are Brain Balance franchisees prohibited from soliciting employees of other Brain Balance franchisees?
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, as detailed in the Operations Manual. The franchisee is obligated to take actions required by Brain Balance both during and after the termination of the Franchise Agreement to protect trade secrets and confidential information.
This implies that after the termination of the agreement, a franchisee is likely restricted from soliciting employees of other Brain Balance franchisees, given the existence of the Non-Solicitation Agreement. The exact terms and duration of this restriction would be specified in Exhibit 3, the Confidentiality, Non-Solicitation, and Non-Compete Agreement, and within the Operations Manual, which are not included in this excerpt.
Prospective franchisees should carefully review Exhibit 3 and the Operations Manual to fully understand the scope and limitations of the non-solicitation agreement, including the duration of the restriction and any specific conditions that apply after termination. Understanding these details is crucial for assessing the potential impact on their ability to operate a similar business or hire former employees of other Brain Balance centers after the franchise agreement ends.