Does the Best Brains FDD include State Law Addenda to the Franchise Agreement as a schedule?
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
Exhibit F List of Former Franchisees
Exhibit G Release
Exhibit H Financial Statements
Exhibit I State Addenda to the Disclosure Document
Exhibit J State Effective Dates
Exhibit K Receipts
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the franchise agreement includes state law addenda as a schedule. Specifically, Exhibit B, the Franchise Agreement, includes Schedule 5, which is designated for State Law Addenda to the Franchise Agreement. This indicates that the franchise agreement is designed to be modified by addenda that address specific state laws, ensuring compliance across different jurisdictions.
For a prospective Best Brains franchisee, this means that the standard franchise agreement may be supplemented by additional terms and conditions that are specific to the state in which the franchise will operate. These addenda could cover a variety of topics, such as franchise registration requirements, termination and renewal rights, dispute resolution procedures, and other legal matters that vary from state to state.
It is important for potential franchisees to carefully review Schedule 5 and any other state-specific addenda to understand their rights and obligations under the franchise agreement in their particular state. Franchisees should also consult with an attorney to ensure that they fully understand the legal implications of these addenda and how they may affect their franchise operations. This is a fairly standard practice in franchising, as franchisors often need to tailor their agreements to comply with varying state laws.
In addition to the State Law Addenda, the Best Brains FDD also includes Exhibit I, which is designated as State Addenda to the Disclosure Document. This exhibit likely contains additional information or disclosures that are required by certain states, further emphasizing the importance of understanding the state-specific requirements for franchising with Best Brains.