Must the assets of the Best Brains franchised business be refurbished to current standards before a transfer?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
raphic area as the court shall allow.
9. TRANFERABILITY OF INTEREST.
- A. Transfer by the Company. We shall have the right, in our sole discretion, to transfer or assign this Agreement and all or any part of its rights or obligations to any person or legal entity who agrees to abide by the obligations in this Agreement. You shall execute such documents consenting to such a transfer as we request.
- B. Transfer by Franchisee. You understand and acknowledge that the rights and duties set forth in this Agreement are personal to you, and that we have granted this franchise in reliance on your business skill, financial capacity, and personal character.
Accordingly, you may not sell, assign, transfer, convey, pledge, encumber, merge, or give (collectively "transfer") away any direct or indirect interest in this Agreement, in Franchisee, or in all or substantially all of the assets of the Franchised Business without our prior written consent. Any purported assignment or transfer not having our written consent shall be null and void.
We shall not unreasonably withhold its written approval of an assignment or transfer, provided:
-
- You have properly offered us the opportunity to exercise the right of first refusal as provided in the right of first refusal section of this Agreement, and we declined to exercise it;
-
- The assignee or transferee has sufficient business experience, aptitude, financial resources, meets our then applicable
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, if a franchisee wants to transfer their Best Brains franchise, they must ensure the assets of the franchised business are refurbished, remodeled, or replaced to comply with the standards currently in place for new franchises.
This requirement is one of several conditions that Best Brains outlines for approving a transfer. Other conditions include offering Best Brains the right of first refusal, ensuring the transferee meets Best Brains' standards for franchisees, and that all monetary obligations to Best Brains are paid. The transferee must also execute the current form of franchise agreement.
Additionally, the franchisee must pay Best Brains a transfer fee of $2,500 for either a Premium Learning Center or a Teacher Learning Center franchise. The franchisee must also execute releases of all claims against Best Brains and its affiliates. These stipulations ensure that the Best Brains franchise system maintains its standards and protects its brand integrity even when ownership changes.