What is the duration of the non-solicitation period after the termination of the Best Brains franchise agreement?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, if the franchise agreement is terminated or expires, the franchisee is subject to a non-solicitation clause. This clause restricts the franchisee from soliciting business from any customer of the franchised business within the same geographic area for a period of two years. This restriction applies regardless of whether the termination is due to the agreement's expiration or a transfer of the franchised business.
This non-solicitation provision is designed to protect Best Brains' customer relationships and prevent former franchisees from unfairly competing by leveraging the goodwill and customer base established during the franchise term. The geographic scope of this restriction is not explicitly defined in this section but is implied to be the area where the franchised business operated.
It's important to note that the enforceability of non-solicitation clauses can vary by jurisdiction. The Best Brains franchise agreement acknowledges this by stating that if any court deems the duration, scope, or geographic area of the restrictions unreasonable, the restrictions will be modified to the maximum extent allowable by law. This ensures that the non-solicitation agreement remains as enforceable as possible while adhering to legal standards.
Prospective franchisees should carefully consider the implications of this non-solicitation clause, as it could impact their ability to operate a similar business in the same area after the franchise agreement ends. Understanding the specific geographic area covered by the non-solicitation clause and the potential limitations on future business activities is crucial for making an informed decision about investing in a Best Brains franchise.