What other covenants in the Best Brains agreement must a franchisee abide by after termination?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
Pay all amounts owing to us or our affiliates,
Cancel your assumed name registration, and not represent that you formerly did business under the Marks.
Transfer some, or all, of the students to another BEST BRAINS learning center, refund some or all of the tuition paid by the students for subjects which have not yet been completed, and take such other actions as we may direct to ensure the orderly transition of such students.
Deliver to us the names, addresses and telephone numbers of your customers during the preceding three years.
Promptly notify the telephone company and all listing agencies of the termination or expiration of your right to use any telephone number and any regular, classified or other listings associated with the Marks and to authorize transfer of same to or at the direction of the Company.
You agree that we have the sole rights to and interest in all e-mail and internet addresses, websites, domain names, social media sites and search engine identifiers, and all telephone and facsimile numbers and directory listings associated with the Marks, and you authorize us, and appoint us as your attorney-in-fact, to direct such telephone companies, internet service providers, domain name registrars, social media hosts and all listing agencies to transfer same to us or our designee.
If we so request, assign to us or our designee your interest in any lease then in effect for the Franchised Business premises.
We have 30 days after termination or expiration of this Agreement to exercise this option.
Adhere to the provisions of the post-term covenants not to compete and not to solicit;
Abide by any other covenant in this Agreement that requires performance by you after you are no longer a franchisee; and
Within 30 days of termination or expiration, furnish to us satisfactory evidence of your compliance with the foregoing obligations.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, several obligations extend beyond the termination or expiration of the Franchise Agreement. These include paying all amounts owed to Best Brains or its affiliates, canceling any assumed name registrations, and refraining from representing any former business association with the Best Brains brand. Franchisees must also transfer students to another Best Brains center if directed, potentially refunding tuition for incomplete subjects to ensure a smooth transition for students.
Additionally, franchisees are required to provide Best Brains with customer contact information from the preceding three years and to notify the telephone company and listing agencies about the termination of their right to use any phone numbers or listings associated with the Best Brains marks, authorizing the transfer of these to Best Brains. Franchisees must also adhere to post-term covenants not to compete or solicit customers within a specified geographic area for a defined period. Furthermore, franchisees must comply with any other covenant in the Agreement that requires performance even after they cease to be a franchisee, and they must provide satisfactory evidence of their compliance with all these obligations within 30 days of termination or expiration.
These post-termination obligations are typical in franchising to protect the brand's goodwill, customer relationships, and competitive position. The non-compete and non-solicitation clauses, in particular, are designed to prevent former franchisees from leveraging their knowledge and relationships gained during the franchise term to unfairly compete with Best Brains. The specific terms of these covenants, such as the duration and geographic scope, are subject to legal review and may be adjusted to ensure enforceability. Prospective franchisees should carefully review these post-termination obligations to understand their responsibilities and limitations after the franchise relationship ends.