factual

What is the duration of the no-solicitation period following the termination of my Best Brains franchise agreement?

Best_Brains Franchise · 2025 FDD

Answer 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, including a transfer of the franchised business, the franchisee is restricted from soliciting business from any customer of the franchised business for a period of two years. This restriction applies within the same geographic area where the Best Brains center was located.

This no-solicitation clause prevents a former franchisee from leveraging their established customer base to start a competing business immediately after leaving the Best Brains system. The clause aims to protect Best Brains's interests by ensuring that former franchisees do not unfairly take away customers they gained while operating under the Best Brains brand.

It's important to note that if a court finds the duration, scope, or geographic area of the no-solicitation clause to be unreasonable, the restrictions will be adjusted to the maximum extent allowed by the court. This ensures that the clause remains enforceable to the fullest legal extent possible, while still protecting the franchisee from overly broad restrictions. Prospective franchisees should carefully consider the implications of this clause and how it might affect their future business endeavors should they decide to leave the Best Brains system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.