Can a Best Brains franchisee offer and sell goods and services that have not been approved by Best Brains?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
8. NON-COMPETE AND NO SOLICITATION.
- A. In-Term. You shall not, during the term of this Agreement, directly or indirectly, offer services similar to those offered by a BEST BRAINS learning center, except under this or another franchise agreement with us.
- 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 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 31)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, franchisees are restricted from offering services that are similar to those offered by Best Brains learning centers during the term of their agreement, unless it is under another franchise agreement with them. This is detailed in the non-compete clause within the franchise agreement.
Specifically, Item 23 outlines that during the term of the agreement, a franchisee cannot directly or indirectly offer services similar to those offered by a Best Brains learning center, except under the current or another franchise agreement with Best Brains. This restriction ensures that franchisees focus on delivering the Best Brains system and do not divert resources or confuse customers with competing offerings.
After the termination or expiration of the franchise agreement, the franchisee is further restricted for a period of two years. During this time, they cannot offer similar services within 25 miles of their former Best Brains location or any other Best Brains location. Additionally, they are prohibited from soliciting business from any customer of the franchised business within the same geographic area for a two-year period. This post-term non-compete clause protects Best Brains' market and customer base.
In summary, a Best Brains franchisee is contractually obligated to exclusively offer the services approved and provided by Best Brains during the term of the franchise agreement. Any deviation from this could be a breach of contract, and after the agreement ends, similar restrictions apply to prevent competition within a specified area and timeframe.