What assets can Best Brains purchase from a franchisee upon termination or expiration?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- **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.
If you and we do not agree upon the amount of the fair market value, then a business appraiser selected by us shall determine the fair market value. The cost of the business appraiser shall be borne equally by us and you.
We have an unrestricted right to assign this option to a third party.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, Best Brains has the option to purchase certain assets from the franchisee. This option extends for 90 days following the termination or expiration date.
The assets that Best Brains may choose to purchase include equipment, supplies, inventory, advertising materials, and any items bearing Best Brains' trademarks. These assets will be purchased for cash at fair market value. If the franchisee and Best Brains cannot agree on the fair market value, a business appraiser selected by Best Brains will determine the value, and the cost of the appraiser will be shared equally between Best Brains and the franchisee.
Best Brains also retains the unrestricted right to assign this purchase option to a third party. This means that another entity could exercise the right to purchase the assets instead of Best Brains itself. Franchisees should be aware of these conditions as they plan for the end of their franchise term or in the event of early termination.