What is the geographic scope of the non-competition covenant after termination or expiration of a Best Brains franchise?
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's 2025 Franchise Disclosure Document, if the franchise agreement is terminated or expires, the franchisee is subject to a non-competition covenant. This covenant restricts the franchisee from offering services similar to those offered by a Best Brains learning center for a period of two years.
The geographic scope of this restriction extends to a 25-mile radius around the franchisee's former Best Brains location. Additionally, the non-compete also applies within 25 miles of any other Best Brains location. This means a former franchisee cannot operate a competing business near their old center or any existing Best Brains center.
Furthermore, the franchisee is prohibited from soliciting business from any customer of the franchised business within the same geographic area for a period of two years after termination or expiration of the franchise agreement. The Best Brains FDD also states that if any part of the non-compete agreement is deemed unenforceable by a court, the restrictions will remain in effect to the maximum extent allowable by law.