factual

After termination of the Brain Balance agreement, for how long are franchisees restricted from entering into a competing supplemental educational services business within the specified radius for Brain Balance?

Brain_Balance Franchise · 2025 FDD

Answer from 2025 FDD Document

For a period of one (1) year after the termination of this Agreement, regardless of the cause of termination, expiration, or non-renewal, neither FRANCHISEE nor any of its officers, directors, shareholders, members, or partners shall enter into the supplemental educational services business, or engage in other related activities, whether as a partner,

stockholder, officer, director, employee, representative, or in any other capacity within a fifty (50) mile radius of the Center.

Source: Item 22 — CONTRACTS (FDD pages 70–72)

What This Means (2025 FDD)

According to Brain Balance's 2025 Franchise Disclosure Document, franchisees are restricted from entering into a competing supplemental educational services business for one year after the termination of the franchise agreement. This restriction applies regardless of the reason for termination, expiration, or non-renewal of the agreement.

This non-compete clause extends not only to the franchisee but also to their officers, directors, shareholders, members, or partners. The restriction prevents them from engaging in competing activities in any capacity, whether as a partner, stockholder, officer, director, employee, or representative.

The geographic scope of this restriction is limited to a 50-mile radius of the Brain Balance center. This means that after leaving the Brain Balance system, a former franchisee cannot operate or be involved in a similar business within that 50-mile zone for the duration of the one-year period.

Brain Balance also includes clauses related to non-solicitation of employees and confidentiality, which remain in effect for two years and indefinitely, respectively, after the termination of the agreement. These measures are designed to protect Brain Balance's interests and maintain a competitive edge.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.