What is the consequence if a Best Brains franchisee does not obtain Best Brains' written approval before signing any lease?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
You must lease the premises for your location in the form and manner required by us and deliver a copy of the signed lease to us immediately after its signing. You must not sign any lease which has not been approved in writing by us. If your business premises is to be leased, you must submit the lease to us for written approval at least fifteen days before it is scheduled to be executed. If you lease your business premises, the lease must include language contained in the Lease Rider which is attached to your Franchise Agreement as Schedule 2. The lease shall give us, our agents or designees the right to enter the premises to conduct inspections at any time during regular business hours, the right to receive notices of default directly from the lessor and the right, but not the duty, to assume the lease for all or any part of the term, if you default under the lease, are evicted or if your Franchise Agreement expires or is terminated. You must not lease or sublet all or any part of your business premises to others or use any portion of the premises for any purpose other than conducting business pursuant to your Franchise Agreement without our prior written consent. You must not sign or agree to any modification of the lease without our prior approval. You must agree that any new, amended, restated, extended or renewed lease for the location will include the above terms and conditions required to be included in a lease for a location. If you want to relocate, you must notify us in writing 60 days before the relocation. We reserve the right to refuse to approve a proposed relocation if we believe that the proposed relocation is for any reason not acceptable to us. Our judgment may be based on factors such as the proximity to existing or proposed locations owned by other franchisees or us, the suitability of the proposed facilities, compliance with our then current franchise location requirements, the competitiveness within the market place or other factors. We recommend that you employ the services of a real estate attorney for legal advice regarding the terms of the lease. (Franchise Agreement - Sections 5.C and D.)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 23–28)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, a franchisee must obtain written approval from Best Brains before signing any lease for their business premises. The FDD does not explicitly state the consequences of failing to obtain this approval. However, it does state that the franchisee 'must not sign any lease which has not been approved in writing' by Best Brains.
Given this requirement, a franchisee who signs a lease without prior written approval from Best Brains would be in violation of the Franchise Agreement. While the FDD does not specify the exact repercussions, such a violation could potentially lead to penalties, including but not limited to, breach of contract claims, monetary fines, or even termination of the Franchise Agreement.
Prospective franchisees should carefully review the Franchise Agreement and consult with a legal professional to fully understand the potential ramifications of non-compliance with the lease approval process. It would be prudent to seek clarification from Best Brains regarding the specific consequences of signing a lease without their prior written approval to avoid any misunderstandings or disputes in the future.