What actions must a Best Brains franchisee take upon termination or non-renewal of the franchise agreement?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
Pay all amounts owing to us or our affiliates,
Cancel your assumed name registration, and not represent that you formerly did business under the Marks.
Transfer some, or all, of the students to another BEST BRAINS learning center, refund some or all of the tuition paid by the students for subjects which have not yet been completed, and take such other actions as we may direct to ensure the orderly transition of such students.
Deliver to us the names, addresses and telephone numbers of your customers during the preceding three years.
Promptly notify the telephone company and all listing agencies of the termination or expiration of your right to use any telephone number and any regular, classified or other listings associated with the Marks and to authorize transfer of same to or at the direction of the Company.
You agree that we have the sole rights to and interest in all e-mail and internet addresses, websites, domain names, social media sites and search engine identifiers, and all telephone and facsimile numbers and directory listings associated with the Marks, and you authorize us, and appoint us as your attorney-in-fact, to direct such telephone companies, internet service providers, domain name registrars, social media hosts and all listing agencies to transfer same to us or our designee.
If we so request, assign to us or our designee your interest in any lease then in effect for the Franchised Business premises.
We have 30 days after termination or expiration of this Agreement to exercise this option.
Adhere to the provisions of the post-term covenants not to compete and not to solicit;
Abide by any other covenant in this Agreement that requires performance by you after you are no longer a franchisee; and
Within 30 days of termination or expiration, furnish to us satisfactory evidence of your compliance with the foregoing obligations.
- **F.
Option to Purchase Assets.** Upon the termination or expiration of this Agreement, we have a 90 day option to purchase from you some or all of the equipment, supplies, inventory, advertising materials and any items with our Marks for cash at fair market value.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 32–34)
What This Means (2025 FDD)
According to Best Brains's 2025 Franchise Disclosure Document, upon termination or non-renewal of the franchise agreement, a franchisee has several obligations. These include paying all outstanding amounts owed to Best Brains or its affiliates. The franchisee must also cancel their assumed name registration and refrain from representing themselves as a former Best Brains franchisee.
Additionally, Best Brains may direct the franchisee to transfer students to another Best Brains center, refund tuition for incomplete subjects, and take other actions to ensure a smooth transition for the students. The franchisee is required to provide Best Brains with customer names, addresses, and telephone numbers from the preceding three years. They must also notify the telephone company and listing agencies about the termination of their right to use any telephone number or listings associated with the Best Brains marks, authorizing the transfer of these to Best Brains.
Best Brains retains sole rights to all email and internet addresses, websites, domain names, social media sites, search engine identifiers, telephone and facsimile numbers, and directory listings associated with their marks. The franchisee must adhere to post-term covenants not to compete or solicit customers. Furthermore, the franchisee must comply with any other covenant in the agreement that requires performance after they are no longer a franchisee. Within 30 days of termination or expiration, the franchisee must provide satisfactory evidence of compliance with these obligations. Best Brains also has the option to purchase the franchisee's assets within 90 days of termination or expiration.
These obligations are fairly standard in franchise agreements to protect the brand's reputation and customer base. Prospective franchisees should carefully review these post-termination requirements to understand their responsibilities and potential limitations after the franchise agreement ends. It is important to note the non-compete and non-solicitation clauses, which can significantly restrict the franchisee's ability to operate a similar business in the same area after leaving the Best Brains system.