What assets can Best Brains purchase under its option to purchase a Best Brains franchisee's business?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| o. Franchisor’s option to purchase franchisee’s business | Section 7.F | Option to purchase some or all equipment, supplies, inventory, advertising materials and any items with our logo, for cash at fair market value, exercisable up to 90 days after termination or expiration. If no agreement on fair market value, an appraiser appointed by us will decide. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 32–34)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, Best Brains has the option to purchase certain assets from a franchisee's business. This option becomes available up to 90 days after the termination or expiration of the franchise agreement.
Specifically, Best Brains can purchase some or all of the franchisee's equipment, supplies, inventory, and advertising materials. Additionally, Best Brains can purchase any items that feature the Best Brains logo. All such purchases will be made with cash, and the price will be based on the fair market value of the assets.
If the franchisee and Best Brains cannot agree on the fair market value of the assets, Best Brains will appoint an appraiser to determine the value. This process ensures that a neutral third party assesses the worth of the assets, which could be beneficial or detrimental to the franchisee depending on the appraiser's assessment. Prospective franchisees should consider this when evaluating the terms of the franchise agreement, as it dictates the conditions under which Best Brains can acquire their business assets upon termination or expiration of the franchise.