After the Best Brains franchise is terminated or expires, what is the geographic restriction on offering similar services or soliciting past customers?
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, if the franchise agreement is terminated or expires, franchisees face certain restrictions. For a period of two years, the franchisee cannot offer services similar to those of a Best Brains learning center within 25 miles of their former location or within 25 miles of any other Best Brains location.
In addition to the geographic restriction, the franchisee is also prohibited from soliciting business from any customer of the former franchised business within the same geographic area for a period of two years. This means a former franchisee cannot actively seek out or try to attract students who were previously enrolled at their Best Brains center.
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 implies that Best Brains intends to enforce these non-compete and non-solicitation clauses to the fullest extent possible under applicable law. Prospective franchisees should consider these restrictions carefully, as they could significantly limit their business opportunities after leaving the Best Brains system.
These types of post-term non-compete and non-solicitation clauses are common in franchising to protect the brand's market share and customer base. The specific terms (duration and geographic scope) can vary widely across different franchise systems. It is important for potential franchisees to understand these restrictions and how they might impact their future plans before investing in a franchise.