What is the duration of the non-competition covenant for a Best Brains franchisee after the franchise is terminated or expires?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 32–34)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, a franchisee is subject to a non-competition covenant for two years after the franchise agreement terminates or expires. During this period, the franchisee cannot offer services similar to those offered by a Best Brains learning center. This restriction applies within 25 miles of the franchisee's former location or within 25 miles of any other Best Brains location.
In addition to the restriction on offering similar services, the franchisee is also prohibited from soliciting business from any customer of the franchised business within the same geographic area for a period of two years following the termination or expiration of the franchise agreement. This prevents a former franchisee from directly taking clients away from the Best Brains system.
The FDD also states that if any court finds the duration, scope, or geographic area of these restrictions to be unreasonable, the restrictions will remain in effect to the maximum extent allowed by the court. This clause aims to ensure that the non-compete and non-solicitation agreements are enforced as much as possible, even if the original terms are deemed too broad. This is a fairly standard practice in franchising to protect the brand's customer base and market share.