After termination of the Brain Balance agreement, for how long are franchisees prohibited from employing individuals employed by Brain Balance or its 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)
The 2025 Brain Balance Franchise Disclosure Document (FDD) does not explicitly state the duration of the prohibition on employing individuals who were previously employed by Brain Balance or its franchisees after the termination of the franchise agreement. However, the FDD does mention a Confidentiality, Non-Solicitation, and Non-Compete Agreement.
Item 10.17(a) states that all permanent staff of the franchised business must execute Exhibit 3, which is the Confidentiality, Non-Solicitation, and Non-Compete Agreement as provided in the Operations Manual. The franchisee is obligated to take actions required by Brain Balance both during and upon termination of the agreement to protect trade secrets and confidential information.
Since the specific duration of the non-compete agreement is not detailed in the provided excerpts, prospective franchisees should review Exhibit 3 and the Operations Manual carefully. It would be prudent to seek clarification from Brain Balance regarding the terms and duration of the non-solicitation and non-compete agreements for employees after the franchise agreement is terminated. Understanding these restrictions is crucial for workforce planning and future business operations after the franchise term.