Does the non-compete apply if my Best Brains franchise agreement expires instead of being terminated?
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 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the post-term non-compete agreement applies both in the event of termination or expiration of the franchise agreement. Specifically, if the agreement terminates or expires, the franchisee cannot offer similar services to a Best Brains learning center within 25 miles of their former location or any Best Brains location. This restriction lasts for two years.
Additionally, 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 following the termination or expiration of the agreement. This means that even if the franchise agreement expires naturally, the franchisee is still bound by these restrictions.
It is important to note that the enforceability of these non-compete terms can vary by state. For example, the FDD includes a North Dakota addendum stating that covenants not to compete are generally considered unenforceable in North Dakota. Prospective franchisees should carefully review these clauses and any applicable state-specific addenda with a legal professional to understand the full scope and enforceability of these restrictions in their specific location.