Is executing releases of claims a condition for Best Brains franchise renewal?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
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- You (and your owners if Franchisee is an entity) shall execute Releases, in a form satisfactory to us, of any and all claims against the us and our affiliates, and their officers, directors, managers, shareholders, members, employees and agents.
The franchise agreement and ancillary agreements at the time of renewal may contain materially different terms from those contained in this Agreement. Failure by you (and your owners, if Franchisee is an entity) to sign such agreement(s) and releases within thirty (30) days after delivery thereof shall be deemed an election not to renew.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains's 2025 Franchise Disclosure Document, a franchisee must execute releases of claims against Best Brains and its affiliates as a condition for franchise renewal. Specifically, the franchisee (and their owners, if the franchisee is an entity) must provide releases in a form satisfactory to Best Brains. These releases cover any and all claims against Best Brains, its affiliates, and their respective officers, directors, managers, shareholders, members, employees, and agents.
Failure to sign the franchise agreement, ancillary agreements, and releases within thirty days after delivery is considered an election not to renew the franchise. This requirement ensures that Best Brains is protected from potential legal liabilities or disputes with the franchisee upon renewal.
However, the Maryland Addendum to the Franchise Agreement provides an exception. In Maryland, a release required as a condition of renewal, sale, or assignment/transfer does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This means that Maryland franchisees retain their rights under that specific law, even if they sign a general release as part of the renewal process. This addendum also states that no statement, questionnaire, or acknowledgment signed by a franchisee in connection with the commencement of the franchise relationship shall waive any claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor.