What is the consequence if a Best Brains franchisee signs a lease that has not been approved in writing by Best Brains?
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 not sign any lease that has not been approved in writing by Best Brains. The FDD does not explicitly state the consequences of violating this requirement. However, the document does state that the franchisee must lease the premises for their location in the form and manner required by Best Brains and deliver a copy of the signed lease to them immediately after signing.
Best Brains requires that the lease be submitted for written approval at least fifteen days before it is scheduled to be executed. Additionally, if the business premises is to be leased, the lease must include specific language contained in the Lease Rider attached to the Franchise Agreement. This Lease Rider gives Best Brains the right to enter the premises for inspections, receive default notices from the lessor, and assume the lease if the franchisee defaults, is evicted, or if the Franchise Agreement expires or is terminated.
Given the level of detail and control Best Brains exerts over the lease agreement, a franchisee signing a lease without written approval could face significant repercussions. While not explicitly stated, these could potentially include breach of contract, financial penalties, or even termination of the franchise agreement. It is essential for prospective franchisees to adhere strictly to the franchisor's requirements regarding site selection and lease negotiation to avoid potential conflicts and ensure compliance with the franchise agreement.