Does Best Brains have to compensate franchisees for soliciting or accepting orders from near their location?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
8. NON-COMPETE AND NO SOLICITATION.
- A. In-Term. You shall not, during the term of this Agreement, directly or indirectly, offer services similar to those offered by a BEST BRAINS learning center, except under this or another franchise agreement with us.
- B. Post-Term. In the event of termination or expiration of this Agreement, including a transfer of the Franchised Business or your interest in it, you will not, directly or indirectly, for a period of two (2) years offer services similar to those offered by a BEST BRAINS learning center at or within 25 miles of your former location or within 25 miles of any BEST BRAINS location.
- C. No Solicitation. In addition, in the event of the termination or expiration of the Agreement, including a transfer of the Franchised Business or your interest in it, you will not for a two (2) year period, within the same geographic area solicit business for a learning center from any customer of the Franchised Business. If the duration, scope and/or geographic area set forth in this paragraph and Agreement are held to be unreasonable and therefore unenforceable by any court of competent jurisdiction, then the duration, scope and/or geographic area of the foregoing restrictions and agreements shall remain in full force and effect as to such maximum duration, scope and/or geographic area as the court shall allow.
Source: Item 12 — TERRITORY (FDD pages 28–29)
What This Means (2025 FDD)
The 2025 Best Brains Franchise Disclosure Document does not specify any requirement for Best Brains to compensate franchisees if the company solicits or accepts orders from near a franchisee's location. However, the document does outline non-compete and no-solicitation clauses that affect franchisees both during and after the term of their agreement.
During the franchise term, franchisees are prohibited from offering services similar to those of a Best Brains learning center, except under an agreement with Best Brains. After the agreement terminates or expires, franchisees are restricted for two years from offering similar services within 25 miles of their former location or any other Best Brains location. They are also prohibited from soliciting business from any customer of the franchised business within the same geographic area for two years.
These restrictions are designed to protect Best Brains' market and brand. Prospective franchisees should carefully consider these limitations and how they might affect their business operations, particularly if they plan to continue similar services after the franchise agreement ends. It is advisable to seek clarification from Best Brains regarding any potential scenarios where the company's actions might impact a franchisee's business within their protected territory.