What exhibit in the Best Brains Disclosure Document contains the Option Agreement?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
I have received a disclosure document dated May 27, 2025 that included the following Exhibits:
Exhibit A State Administrators and Agents for Service of Process
Exhibit B Franchise Agreement
Schedule 1-Franchise Location
Schedule 2-Lease Rider
Schedule 3-ACH Authorization Form
Schedule 4-Initial Inventory Agreement
Schedule 5-State Law Addenda to the Franchise Agreement
Exhibit C Promissory Notes Exhibit D Option Agreement Exhibit E List of Franchisees
Source: Item 5 — INITIAL FEES (FDD page 11)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the Option Agreement is found in Exhibit D. This agreement outlines the terms under which a franchisee can secure the right to explore acquiring an additional franchise territory.
Specifically, the Option Agreement grants the franchisee a 90-day period to find a location and obtain a new Franchise Agreement for a potential new territory. In exchange for this right, the franchisee pays a nonrefundable deposit of $2,500. If the franchisee successfully secures a lease and a new Franchise Agreement within the 90-day period, this $2,500 deposit is credited towards the initial franchise fee for the new territory.
However, if the franchisee does not secure a location and new Franchise Agreement within the 90-day period, the $2,500 is retained by Best Brains as consideration for the rights granted under the Option Agreement. This arrangement allows existing franchisees to explore expansion opportunities with a defined timeframe and financial commitment, while also providing Best Brains with compensation for reserving the territory.