After termination of the Brain Balance agreement, for how long are franchisees prohibited from soliciting employees of the Brain Balance business?
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 states that all permanent staff of a franchised business must execute a Confidentiality, Non-Solicitation, and Non-Compete Agreement. The franchisee must take action to protect trade secrets and confidential information both during and after the termination of the Franchise Agreement.
However, the FDD excerpt does not specify the duration of the non-solicitation or non-compete clauses within the agreement. The excerpt only confirms that such an agreement exists and must be signed by permanent staff. The specific terms of these agreements, including the length of time the franchisee is restricted from soliciting employees after termination, are not detailed in this section.
A prospective Brain Balance franchisee should review Exhibit 3, the Confidentiality, Non-Solicitation, and Non-Compete Agreement, referenced in the FDD to understand the exact terms and duration of these restrictions. It would be prudent to discuss these terms with the franchisor to fully understand the obligations and limitations after the franchise agreement ends.