Who is considered a third-party beneficiary of the lease agreement for a Best Brains franchise?

According to Best Brains' 2025 Franchise Disclosure Document, the franchisor (or its affiliate, or a company with which the franchisee or the franchisor may merge or consolidate) is considered an intended third-party beneficiary of the lease. This means that while the franchisee and the landlord are the primary parties to the lease agreement, Best Brains also has specific rights and benefits outlined in the lease.

This designation allows Best Brains to enforce certain provisions of the lease, subject to conditions specified in the lease rider. For example, the landlord must provide Best Brains with all information related to sales and operations of the Best Brains business. Additionally, copies of any notices related to the lease must be sent to Best Brains.

This arrangement protects Best Brains' interests by ensuring the location continues to operate as a Best Brains center, even if the franchisee's involvement changes. It also allows Best Brains to maintain control over the premises and brand identity. The franchisee benefits from this arrangement as well, as it ensures that Best Brains has a vested interest in the success and stability of the franchise location.

In the event that the Franchise Agreement expires or is terminated, the landlord can terminate the lease unless Best Brains (or its affiliate or a company with which the Franchisee or the Franchisor may merge or consolidate) assumes the lease within 30 days of the termination or expiration of the Franchise Agreement. If the lease expires or is terminated for any reason, Best Brains has the right to enter the premises and remove any signs or other articles bearing any trade names, logos, trademarks that are part of the Best Brains system and de-identify the leased premises as a Best Brains business.