What is the geographic limit of the non-competition covenant after the Best Brains franchise is terminated or expires?
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, the franchisee is restricted from offering similar services to those of a Best Brains learning center. This restriction applies for two years within 25 miles of the former Best Brains location or any other Best Brains location.
Additionally, the franchisee is prohibited from soliciting business from any customer of the franchised business within the same geographic area for a two-year period following the termination or expiration of the franchise agreement. This includes instances where the franchised business or the franchisee's interest in it is transferred.
The FDD also states that if a court of competent jurisdiction deems the duration, scope, or geographic area of these restrictions to be unreasonable and therefore unenforceable, the restrictions will remain in effect to the maximum extent allowed by the court. This clause ensures that Best Brains has the broadest possible protection permitted by law, even if the original terms are found to be overly restrictive.