If a Best Brains franchisee sells or transfers the Franchised Business, what post-termination obligations apply?
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.
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Adhere to the provisions of the post-term covenants not to compete and not to solicit;
Abide by any other covenant in this Agreement that requires performance by you after you are no longer a franchisee; and
Within 30 days of termination or expiration, furnish to us satisfactory evidence of your compliance with the foregoing obligations.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, several post-termination obligations apply when a franchisee transfers their Best Brains business. These obligations are designed to protect the Best Brains brand and ensure a smooth transition.
Specifically, the franchisee must adhere to post-term covenants not to compete or solicit customers. This means that for two years after the transfer, the franchisee cannot offer similar services within 25 miles of their former Best Brains location or any other Best Brains center. They are also prohibited from soliciting business from existing customers of the franchised business within the same geographic area for a two-year period.
Additionally, the franchisee must abide by any other covenant in the Franchise Agreement that requires performance after they are no longer a franchisee. Within 30 days of the transfer, the franchisee must furnish satisfactory evidence of their compliance with all these obligations to Best Brains. These measures ensure that the outgoing franchisee does not unfairly compete with Best Brains or disrupt the established customer base after transferring the business.