factual

Are there any specific clauses that Best Brains requires to be included in the confidentiality and non-competition agreements?

Best_Brains Franchise · 2025 FDD

Answer from 2025 FDD Document

You agree that you will maintain the absolute confidentiality of all, and not disclose any, such information during and after the term of this Agreement and that you will not use any such information in any other business or in any manner not specifically authorized or approved in writing by us. You agree to require all of your personnel to sign a confidentiality and non-competition agreement in the form prescribed by us.

8. NON-COMPETE AND NO SOLICITATION.

  • A. In-Term. You shall not, during the term of this Agreement, directly or indirectly, offer services similar to those offered by a BEST BRAINS learning center, except under this or another franchise agreement with us.
  • 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 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 30–31)

What This Means (2025 FDD)

According to Best Brains' 2025 Franchise Disclosure Document, franchisees must maintain absolute confidentiality of all information related to the Best Brains business both during and after the franchise agreement term. Franchisees are prohibited from disclosing any confidential information or using it in any business not explicitly authorized by Best Brains.

Furthermore, Best Brains requires franchisees to ensure that all personnel sign a confidentiality and non-competition agreement in a form that Best Brains prescribes. This indicates that Best Brains provides a standard template for these agreements, ensuring uniformity and adherence to their specific requirements for protecting proprietary information and business practices.

In addition to the confidentiality agreement, the FDD outlines non-compete clauses that restrict a franchisee's ability to offer similar services during the term of the agreement and for a period of two years after termination or expiration. These restrictions apply within 25 miles of the former Best Brains location or any other Best Brains location. The franchisee is also prohibited from soliciting business from any customer of the franchised business within the same geographic area for a two-year period following termination or expiration of the agreement.

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.