What is the definition of 'Prohibited Activities' for Best In Class Education Center franchisees?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
"Prohibited Activities" means and includes any of the following: (a) owning, operating or having any other interest (e.g., as a director, officer, employee, manager, consultant, creditor, representative, agent or in any similar capacity) in a Competing Business, other than owning less than 5% of the Equity Interests in a Competing Business that is a publicly-traded company; (b) disparaging or otherwise making negative comments about us, our affiliate, the System or any Center (this provision does not prohibit disclosure of truthful information to Governmental Authorities); (c) diverting or attempting to divert any business from us, our affiliate or another franchisee; and/or (d) inducing any Person to transfer their business from a Center to a competitor.
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Best In Class Education Center Franchise Disclosure Document, 'Prohibited Activities' are specifically defined to protect the brand and its franchisees. These activities include owning or operating any interest in a competing business, unless the ownership is less than 5% of a publicly-traded company. This restriction prevents franchisees from directly engaging in businesses that could draw customers away from Best In Class Education Center.
Furthermore, franchisees are prohibited from making disparaging or negative comments about Best In Class Education Center, its affiliates, the system, or any center. However, this does not prevent franchisees from disclosing truthful information to governmental authorities. This clause aims to maintain a positive brand image and prevent internal conflicts from harming the reputation of the franchise.
Additionally, franchisees cannot divert or attempt to divert business away from Best In Class Education Center, its affiliates, or other franchisees. They are also prohibited from inducing anyone to transfer their business from a Best In Class Education Center to a competitor. These measures ensure that franchisees remain committed to growing the Best In Class Education Center brand and do not undermine the success of the network.