Does the post-term non-compete restriction for Best Brains apply if I transfer my franchised business?
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 does apply if you transfer your franchised business. Specifically, upon the termination or expiration of the Franchise Agreement, which includes a transfer of the franchised business or your interest in it, you are subject to certain restrictions.
For a period of two years after the transfer, you cannot offer services similar to those offered by a Best Brains learning center. This restriction applies at or within 25 miles of your former Best Brains location, or within 25 miles of any other Best Brains location.
In addition to the non-compete clause, there is also a non-solicitation clause that takes effect upon termination or expiration of the agreement, including a transfer of the franchise. For two years, you are prohibited from soliciting business from any customer of the franchised business within the same geographic area. These restrictions are designed to protect Best Brains' market and customer base, even after you have transferred your business.