What are the non-competition covenants after the Best Brains franchise is terminated or expires?
Best_Brains Franchise · 2025 FDDAnswer 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 | Section 8.A | May not offer services similar to those |
| during the term of the | offered by a BEST BRAINS learning | |
| franchise | 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 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 32–34)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, franchisees are subject to certain non-competition covenants after the termination or expiration of their franchise agreement. Specifically, for a period of two years, franchisees may not offer services similar to those offered by a Best Brains learning center. This restriction applies within a 25-mile radius of their former Best Brains location or any other Best Brains learning center.
In addition to the restriction on offering similar services, former Best Brains franchisees are also prohibited from soliciting business from any customer of the franchised business for a two-year period within the same geographic area. This prevents a former franchisee from leveraging their existing customer relationships to start a competing business shortly after leaving the Best Brains system.
The FDD also states that if any court of competent jurisdiction deems the duration, scope, or geographic area of these restrictions to be unreasonable and therefore unenforceable, the restrictions will remain in effect to the maximum extent allowed by the court. This clause aims to ensure that the non-compete provisions are upheld as much as possible, even if the original terms are found to be overly broad.
These non-competition covenants are designed to protect Best Brains' market share and customer base. Prospective franchisees should carefully consider these restrictions and how they might impact their future business opportunities should they decide to leave the Best Brains system.