What is the consequence if a Best Brains franchisee does not obtain Best Brains' approval of the site location and the lease?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
You must obtain our approval of the site location and the lease.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 23–28)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, a franchisee must obtain Best Brains' written approval for both the site location and the lease agreement. The FDD states, "You must obtain our approval of the site location and the lease." While the document emphasizes the necessity of this approval, it does not explicitly state the consequences of failing to obtain it.
However, the FDD does state that franchisees "must not sign any lease which has not been approved in writing by us." This implies that signing a lease without prior written approval from Best Brains would be a violation of the franchise agreement. Franchise agreements typically include clauses that allow the franchisor to terminate the agreement if the franchisee breaches its terms. Therefore, a potential consequence of not obtaining approval could be termination of the franchise agreement.
Given the lack of explicit detail in the FDD, it is crucial for prospective Best Brains franchisees to seek clarification from the franchisor regarding the specific ramifications of not securing location and lease approval. Understanding these consequences is essential for making informed decisions and avoiding potential breaches of the franchise agreement.