Who is the Best Brains agreement binding upon?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, the Franchisee and/or the Franchisee's principals have executed a franchise agreement (the "Franchise Agreement") with Best Brains, Inc., an Illinois corporation (the "Franchisor"), for the operation of a Best Brains business at the Premises, and as a requirement thereof, the Lease for the Premises must include the provisions contained in this Rider; and
WHEREAS, Landlord, Franchisor and the Franchisee agree that the terms contained herein shall supersede any terms to the contrary set forth in the Lease;
NOW THEREFORE, in consideration of mutual covenants set forth herein, the execution and delivery of the Lease, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Landlord, Franchisor and the Franchisee hereby agree as follows:
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the terms of the lease agreement for the premises of the Best Brains business are binding upon the Landlord, Franchisor, and the Franchisee. This is established through a Lease Rider that outlines specific agreements between these parties. The Lease Rider ensures that the premises are used only for operating a Best Brains business, and it requires the landlord to provide the franchisor with copies of any default or termination notices sent to the franchisee.
Additionally, the Lease Rider grants Best Brains the right, but not the obligation, to enter the premises to address any breaches of the lease. Best Brains can also take over the franchisee's rights and interests under the lease by providing written notice to both the franchisee and the landlord. The franchisee has the right to transfer their interest in the lease to Best Brains or its affiliates without needing the landlord's approval. The landlord must also consent to the assignment of the lease to Best Brains if the Franchise Agreement is terminated or expires and no subsequent agreement is executed.
Furthermore, the Lease Rider acknowledges that Best Brains is a third-party beneficiary of the lease, allowing it to enforce provisions that benefit the franchisor. Any modifications or renewals of the lease are subject to Best Brains' approval. The agreement also stipulates that the terms in the Lease Rider supersede any conflicting terms in the original lease, ensuring that the specific requirements for operating a Best Brains franchise are prioritized.
Overall, this Lease Rider is designed to protect Best Brains' interests by ensuring compliance with franchise standards and providing mechanisms for the franchisor to maintain control over the premises and operations, even in situations involving lease defaults or termination of the franchise agreement. Prospective franchisees should carefully review these provisions to understand their obligations and the franchisor's rights concerning the leased premises.