What is the definition of 'Competing Business' for Best In Class Education Center franchisees?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
"Competing Business" means any business that meets at least one of the following criteria: (a) any educational business that derives, or is reasonably expected to derive, at least 50% of its revenues from the sale of one or more of the following: (i) supplemental education classes and/or tutoring in Mathematics; (ii) supplemental education classes and/or tutoring in English; (iii) SAT preparation courses and/or tutoring; (iv) ACT preparation courses and/or tutoring; and/or (v) the sale of any educational products relating to any of the foregoing types of educational services; (b) any business that solicits, offers or sells franchises or licenses for a business that meets the criteria in clause (a) of this definition; and/or (c) any business that services, trains, supports, consults with, advises or otherwise assists any Person with respect to the development, management and/or operation of a business that meets the criteria in clause (a) of this definition. A Competing Business does not include any Center or Satellite Office operated pursuant to a valid franchise agreement, license agreement or Satellite Office Addendum signed by us or our affiliate.
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Best In Class Education Center FDD, a 'Competing Business' is defined as any business meeting at least one of three criteria. First, it includes any educational business that derives, or is reasonably expected to derive, at least 50% of its revenue from supplemental education classes or tutoring in Mathematics or English, SAT/ACT preparation courses or tutoring, or the sale of educational products related to these services.
Second, a 'Competing Business' is any business that solicits, offers, or sells franchises or licenses for a business that meets the criteria of the educational businesses described above. This means that even if a business doesn't directly offer educational services, it's considered a 'Competing Business' if it franchises or licenses others to do so.
Third, the definition extends to any business that services, trains, supports, consults with, advises, or otherwise assists any person in the development, management, or operation of an educational business as defined in the first criterion. However, the definition of 'Competing Business' specifically excludes any Best In Class Education Center or Satellite Office operated under a valid agreement with Best In Class Education Center or its affiliates. This clarification ensures that franchisees are not considered competitors within the Best In Class Education Center system.