Under what circumstances related to confidential information can the Brain Balance franchise agreement be terminated?
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)
Based on the 2025 Franchise Disclosure Document, the Brain Balance franchise agreement includes stipulations regarding the use and protection of confidential information, but it does not explicitly state that a breach of confidentiality will result in termination. However, the agreement emphasizes the importance of the Brain Balance System, Marks, and confidential information, and outlines the franchisee's obligations to protect them.
The franchise agreement states that all permanent staff must execute a Confidentiality, Non-Solicitation, and Non-Compete Agreement. The franchisee is obligated to take necessary actions to protect trade secrets and confidential information, both during and after the termination of the agreement. This highlights the franchisor's concern over protecting its intellectual property and proprietary information.
While the FDD excerpts provided do not directly state that violating confidentiality terms leads to immediate termination, it is crucial for prospective franchisees to understand the full scope of the franchise agreement, including all potential events of default that could lead to termination. It would be prudent for a potential franchisee to discuss with Brain Balance the specific consequences of breaching confidentiality agreements, and under what conditions such breaches could lead to the termination of the franchise agreement.