Does Best Brains grant franchisees an exclusive territory?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
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 12 — TERRITORY (FDD pages 28–29)
What This Means (2025 FDD)
Based on the 2025 Best Brains Franchise Disclosure Document, the agreement does not explicitly grant franchisees an exclusive territory. However, it does include certain restrictions regarding competition. During the term of the agreement, franchisees are prohibited from offering similar services to Best Brains, except under another franchise agreement with them.
After the agreement terminates or expires, including if the franchise is transferred, the franchisee is restricted for two years from offering similar services within 25 miles of their former Best Brains location or any other Best Brains location. Additionally, for two years after termination or expiration, the franchisee cannot solicit business from any customer of the franchised business within the same geographic area.
These non-compete and non-solicitation clauses provide some level of territorial protection, but it's not a guarantee of an exclusive territory. The franchisor could potentially establish another Best Brains franchise nearby, as long as it doesn't violate the terms of the non-compete agreement. A prospective franchisee should carefully consider these restrictions and their potential impact on their business before investing in a Best Brains franchise.