After termination of the Brain Balance agreement, for how long are franchisees prohibited from soliciting employees of Brain Balance or 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)
The 2025 Brain Balance Franchise Disclosure Document does not explicitly state the duration of the non-solicitation period for franchisees after the termination of the franchise agreement. However, it does mention that all permanent staff of the franchised business must execute a Confidentiality, Non-Solicitation, and Non-Compete Agreement, as detailed in the Operations Manual. The franchisee is obligated to take actions to protect Brain Balance's trade secrets and confidential information both during and after the agreement's termination.
Because the specific length of the non-solicitation agreement is not defined in the provided excerpts, prospective franchisees should carefully review Exhibit 3 (the Confidentiality, Non-Solicitation, and Non-Compete Agreement) and the Operations Manual to understand the exact terms and duration of these restrictions. It is essential to know how long you are restricted from soliciting employees of Brain Balance or other Brain Balance franchisees after the agreement terminates, as this could impact your future business activities.
To gain clarity, a potential Brain Balance franchisee should ask the franchisor for a copy of Exhibit 3 and request specific details regarding the length of the non-solicitation period, the scope of the restrictions, and any potential exceptions. Understanding these terms is crucial for making an informed decision about investing in a Brain Balance franchise.