For Best Brains, what constitutes 'routine litigation incidental to the business' that would be an exception to required disclosures?

According to the 2025 Best Brains Franchise Disclosure Document, Best Brains does not have to disclose pending actions if they are considered 'routine litigation incidental to the business'. However, the FDD does not define what constitutes 'routine litigation incidental to the business' in the context of the number of franchisees, size, nature, or financial condition of the franchise system or its business operations.

Without a clear definition, prospective franchisees face uncertainty regarding what types of legal issues Best Brains might consider routine and therefore not disclose. This lack of transparency makes it difficult for potential franchisees to assess the full scope of legal risks associated with investing in a Best Brains franchise. Franchisees should be aware that the franchisor does not have to disclose litigation they deem 'routine'.

To gain clarity, a prospective Best Brains franchisee should ask the franchisor for specific examples of what Best Brains considers 'routine litigation incidental to the business.' They should also inquire about the criteria used to determine whether litigation is significant enough to warrant disclosure, considering the size and financial health of the Best Brains franchise system. Understanding these factors will help a potential franchisee make a more informed decision.