Under the Brain Balance franchise agreement, is the conduct of a franchisee's spouse or immediate family considered a breach if it violates the non-compete clause?

According to Brain Balance's 2025 Franchise Disclosure Document, the actions of a franchisee's spouse or immediate family that would constitute a breach of the non-compete agreement if committed by the franchisee are also considered a breach by the franchisee. Specifically, Section 18.06 of the franchise agreement states that any conduct by the franchisee's spouse or immediate family that violates the non-compete terms will be deemed a breach of the agreement by the franchisee.

This provision has significant implications for prospective Brain Balance franchisees. It means that the franchisee is responsible for ensuring that their spouse and immediate family members also comply with the non-compete obligations outlined in the franchise agreement. This responsibility extends to preventing family members from engaging in activities that could be seen as competing with the Brain Balance business, even if those activities are undertaken independently.

The non-compete agreement itself, as detailed in Section 18.04, restricts the franchisee and their officers, directors, shareholders, members, or partners from entering into the supplemental educational services business or related activities within a 50-mile radius of the Brain Balance center for one year after the termination of the franchise agreement. Given Section 18.06, this restriction effectively extends to the franchisee's spouse and immediate family as well.

Brain Balance includes this clause to protect its business interests and prevent unfair competition. Franchisees should carefully consider these restrictions and ensure that their family members understand and comply with these obligations to avoid potential breaches of the franchise agreement. Franchisees should discuss this with any family members who may be impacted by the non-compete agreement to ensure full compliance.