Does continuation of Best Brains franchise rights depend on any other contingency?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| performance may be required; and right of first refusal declined by us. (also see r below). | ||
| n. Franchisor’s right of first refusal to acquire franchisee’s business | Section 9.D | We can match any offer for your business, except broker’s fees are excluded. Cash may be substituted for any form of payment proposed. |
| o. Franchisor’s option to purchase franchisee’s business | Section 7.F | Option to purchase some or all equipment, supplies, inventory, advertising materials and any items with our logo, for cash at fair market value, exercisable up to 90 days after termination or expiration. If no agreement on fair market value, an appraiser appointed by us will decide. |
| p. Death or disability of franchisee | Section 9.E | You must assign franchise to an approved buyer within 5 months. All transfer provisions of Section 9 apply. |
| q. Non-competition covenants | Section 8.A | May not offer services similar to those |
| during the term of the | offered by a BEST BRAINS learning | |
| franchise | center. | |
| r. Non-competition covenants after the franchise is terminated or expires | Section 8.B. and 8.C | May not offer services similar to those offered by a BEST BRAINS learning center, or solicitation of past customers, for 2 years within 25 miles of your former learning center location or any other BEST BRAINS learning center. |
| s. Modification of the agreement | Sections 5.H. and 12.C | Modification by written agreement signed by you and us. The Operations Manual is subject to change. |
| t. Integration/merger clause | Section 12.C | Only the terms of the Franchise Agreement are binding (subject to state law). Any representations or promises outside of the disclosure document and franchise agreement may not be enforceable. |
| u. Dispute resolution by arbitration or mediation | Section 10.I; Schedule 5 | You must first mediate any claims against us before filing suit. Arbitration only applies to Illinois franchisees and if specified in State Addenda to the Franchise Agreement. |
| v. Choice of forum | Section 10.B | Suits must be in Illinois (subject to applicable state law). |
| w. Choice of law | Section 109.A | Except for federal law, Illinois law applies (subject to state law). |
| Provision | Section in franchise or other agreement | Summary twice in a two year period; felony conviction; loss of business license; unauthorized transfer; repeated breaches; repeated NSF charges; failure to pay monies owed and do not cure within 10 days; fail to use certified teachers; fail to cure a default within 30 days of notice; breach of other agreements with us or our affiliates. |
Source: Item 12 — TERRITORY (FDD pages 28–29)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, several factors can affect the continuation of franchise rights. The table in Item 17 outlines various provisions related to termination and non-renewal. These include instances such as repeated breaches of the agreement, a felony conviction, loss of business license, unauthorized transfer of the franchise, repeated instances of NSF charges, failure to pay monies owed without rectifying within 10 days, failure to use certified teachers, failure to cure a default within 30 days of notice, or breaching other agreements with Best Brains or its affiliates. These stipulations highlight the importance of adhering to the franchise agreement and maintaining operational and ethical standards.
Best Brains can also terminate or choose not to renew the franchise agreement if certain conditions are not met. This includes failure to meet performance standards, which suggests that franchisees must maintain a certain level of business activity and success to keep their franchise. Additionally, Best Brains retains the right of first refusal to acquire the franchisee's business, which means that if a franchisee decides to sell, Best Brains has the option to match any offer.
These terms are typical in franchising, as they protect the brand and ensure consistent standards across all franchise locations. Prospective franchisees should carefully review these conditions to understand their obligations and the circumstances under which their franchise rights could be terminated or not renewed. Understanding these factors is crucial for a successful and long-lasting relationship with Best Brains.