Can a Best Brains franchisee face competition from other channels of distribution or competitive brands that Best Brains controls?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
ge a fee, but you must pay all travel and living expenses to attend training.
ITEM 12. TERRITORY
The franchise is for the operation of one Franchised Business to be located at a site to be approved by both you and us within the state specified in your Franchise Agreement. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. We may franchise or operate anywhere any other learning center using the same Marks as licensed to you in your franchise agreement. We are allowed to operate and franchise anywhere any business under trademarks different from the Marks licensed to you in your franchise agreement and are allowed to conduct anywhere any business using the Marks or System on the Internet or by any other alternate channel of distribution.
You do not receive any rights of first refusal or similar rights to acquire additional franchises.
However, if you are a current franchisee, if we feel that you have the time, energy, management acumen, and capital to expand, we may allow you the right to enter into an Option Agreement (Exhibit D to the Disclosure Document). In exchange for a payment to us of $2,500, we will allow you 90 days to search for a Center location in an agreed upon Search Area.
Source: Item 12 — TERRITORY (FDD pages 28–29)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, a franchisee will not receive an exclusive territory. This means that a Best Brains franchisee may face competition from several sources. These sources include other franchisees, outlets that Best Brains owns themselves, other channels of distribution that Best Brains controls, and competitive brands that Best Brains controls. Best Brains retains the right to franchise or operate any other learning center using the same marks licensed to the franchisee.
Best Brains is also allowed to operate and franchise any business under trademarks different from the marks licensed to the franchisee. Additionally, Best Brains can conduct any business using the marks or system on the Internet or through any other alternate channel of distribution. The FDD specifies that Best Brains has used and reserves the right to use other channels of distribution, such as the Internet, mail order, catalog sales, or offerings at school, to make sales anywhere using the franchisor's principal trademarks.
Furthermore, Best Brains does not have to compensate franchisees for soliciting or accepting orders from near their location. This lack of territorial exclusivity and the franchisor's ability to operate competing businesses or channels can significantly impact a franchisee's potential market share and revenue. Prospective franchisees should carefully consider these competitive factors and evaluate their potential market area to determine if the opportunity aligns with their business goals.