After termination of a Brain Balance franchise, is the franchisee allowed to disclose trade secrets or confidential data?

According to the 2025 Brain Balance Franchise Disclosure Document, franchisees are prohibited from disclosing trade secrets or confidential data after the termination of their franchise agreement. The agreement specifies that franchisees must not reveal any trade secrets or confidential information furnished by Brain Balance to any person, firm, or corporation. The term "trade secrets or confidential data" includes information communicated to the franchisee by Brain Balance, as well as other data and information made available to the franchisee during the operation of the franchised business. This includes, but is not limited to, the Operations Manual, procedures, protocols, practices, forms, and instruments.

This provision is designed to protect Brain Balance's proprietary information and maintain the integrity of its business model. The restriction on disclosing trade secrets and confidential data extends beyond the duration of the franchise agreement, meaning that even after a franchisee's relationship with Brain Balance ends, they are still legally obligated to keep this information confidential. This is a standard practice in franchising to prevent former franchisees from using the franchisor's sensitive information to compete against the brand or to benefit other competing businesses.

For a prospective Brain Balance franchisee, this means understanding that the confidentiality obligations are ongoing and legally binding. It is crucial to carefully review the definition of "trade secrets or confidential data" in the franchise agreement to fully understand the scope of the information that must be protected. Failure to comply with these confidentiality obligations could result in legal action from Brain Balance. Franchisees should also ensure that their staff members are aware of and adhere to these confidentiality requirements, as the franchisee is responsible for their staff's actions in this regard.