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What happens if a Best Brains franchisee offers goods or services that are not approved?

Best_Brains Franchise · 2025 FDD

Answer from 2025 FDD Document

Provision Section in franchise or other agreement Summary
performance may be required; and right of first refusal declined by us. (also see r below).
n. Franchisor's right of first refusal to acquire franchisee's business Section 9.D We can match any offer for your business, except broker's fees are excluded. Cash may be substituted for any form of payment proposed.
o. Franchisor's option to purchase franchisee's business Section 7.F Option to purchase some or all equipment, supplies, inventory, advertising materials and any items with our logo, for cash at fair market value, exercisable up to 90 days after termination or expiration. If no agreement on fair market value, an appraiser appointed by us will decide.
p. Death or disability of franchisee Section 9.E You must assign franchise to an approved buyer within 5 months. All transfer provisions of Section 9 apply.
q. Non-competition covenants during the term of the franchise Section 8.A May not offer services similar to those offered by a BEST BRAINS learning center.
r. Non-competition covenants after the franchise is terminated or expires Section 8.B. and 8.C May not offer services similar to those offered by a BEST BRAINS learning center, or solicitation of past customers, for 2 years within 25 miles of your former learning center location or any other BEST BRAINS learning center.

Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 31)

What This Means (2025 FDD)

According to Best Brains's 2025 Franchise Disclosure Document, franchisees are restricted from offering services similar to those offered by a Best Brains learning center, unless explicitly authorized under the franchise agreement. Specifically, during the term of the agreement, a franchisee cannot directly or indirectly offer similar services except under the Best Brains franchise. This restriction is detailed under the non-competition covenants within the franchise agreement.

Post-termination, the restrictions continue. For two years after the agreement ends (including if the business is transferred), the franchisee 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 existing Best Brains customers within the same geographic area for a period of two years. These measures are in place to protect Best Brains's market and customer base.

These non-compete clauses are standard in franchising to protect the brand and prevent franchisees from leveraging the franchisor's system and customer relationships to start a competing business. The FDD also specifies that if any part of these restrictions is deemed unreasonable by a court, the restrictions will be enforced to the maximum extent allowable by law. This ensures that Best Brains retains as much protection as possible, even if the original terms are challenged.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.