Does the Best Brains Franchise Agreement have additional text added to it, as described in Item 23?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT D
OPTION AGREEMENT
This Option Agreement is entered into as of the Effective Date entered below between the below named Franchisee ("Franchisee") and Best Brains, Inc. ("Franchisor").
WHEREAS Franchisee desires to explore the possibility of acquiring an additional franchise territory from Franchisor;
WHEREAS Franchisee desires to secure the right for a period of 90 days to enter into a lease for a Center location and to obtain from Franchisor a Franchise Agreement for such possible new franchise territory;
WHEREAS Franchisor desires to grant to Franchisee the 90 day right to search for a possible Center location and to obtain a new Franchise Agreement for such possible new franchise territory;
NOW THEREFORE, in consideration of the mutual promises and undertakings herein, the parties agree as follows:
1. Grant of Right
Franchisor hereby grants to Franchisee the right for 90 days ("Deposit Period") to enter into one a lease for a Center location and to obtain from Franchisor a Franchise Agreement for such possible new franchise territory.
Enter Search Area for possible Center location here:
2. Deposit Amount
Franchisee shall pay to Franchisor, at the time of execution of this Agreement, a nonrefundable deposit of $2,500 for the rights described in Section 1 above. If Franchisee secures a lease for a Center location and new Franchise Agreement for that location, then the $2,500 shall be considered a deposit against the initial franchise fee on the new territory. If a Center location and new Franchise Agreement are not obtained in the 90 day period, then the $2,500 payment to Franchisor is nonrefundable as consideration for its rights given up under this Option Agreement.
3. Franchisor's Right to Cancel.
BEST BRAINS®
SCHEDULE 1
TO THE BEST BRAINS FRANCHISE AGREEMENT DATED: _________________________ BETWEEN THE UNDERSIGNED PARTIES
FRANCHISE LOCATION
Schedule 4
INITIAL INVENTORY AGREEMENT
This Initial Inventory Agreement ("Agreement") is made as of the date below by and between Best Brains, Inc. ("Company"), an Illinois corporation, and _________________________ ("Franchisee").
WHEREAS, Company is a franchisor of a learning system; and
WHEREAS, Franchisee needs to procure certain initial inventory (including teaching materials, handouts, advertising materials, and décor) in order to set up and operate their Best Brans franchised outlet; and
WHEREAS, Company desires to offer Franchisee the option to have the Company place the initial inventory purchase for the Franchisee;
WHEREAS, Franchisee desires to have the Company place Franchisee's initial inventory purchase on Franchisee's behalf
NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree as follows:
1. INITIAL INVENTORY PURCHASE
- 1.1Franchisee hereby authorizes Company to place Franchisee's initial inventory purchase for the set up and operation of Franchisee's Best Brains outlet on Franchisee's behalf.
- 1.2Franchisee and Company agree upon contents of initial inventory prior to purchase being placed.
- 1.3 Franchisee acknowledges that, due to availability, the shipped inventory may be missing certain contents which were previously agreed upon.
- 1.4 Company confirms that Franchisee will not be charged for items not shipped in the initial inventory.
2. DELIVERY METHOD
- 2.1The initial inventory items shall be delivered to Franchisee by a mutually agreed upon method, which may vary for certain items. Such methods include delivery to the Franchisee's outlet or pickup at a local FedEx office.
- 2.2 Delivery method will be confirmed by Franchisee prior to shipment.
WHEREAS, the Franchisee and/or the Franchisee's principals have executed a franchise agreement (the "Franchise Agreement") with Best Brains, Inc., an Illinois corporation (the "Franchisor"), for the operation of a Best Brains business at the Premises, and as a requirement thereof, the Lease for the Premises must include the provisions contained in this Rider; and
WHEREAS, Landlord, Franchisor and the Franchisee agree that the terms contained herein shall supersede any terms to the contrary set forth in the Lease;
NOW THEREFORE, in consideration of mutual covenants set forth herein, the execution and delivery of the Lease, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Landlord, Franchisor and the Franchisee hereby agree as follows:
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- The Premises may be used only for the operation of a Best Brains business.
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- Landlord shall deliver to the Franchisor a copy of any notice of default or termination of the Lease at the same time such notice is delivered to the Franchisee, but no later than thirty (30) days before a termination of the Lease would become effective.
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- The Franchisor shall have the right, but not the obligation, upon giving prior written notice of its election to the Franchisee and Landlord, to enter the Premises to cure any breach of the Lease, and if so stated in the notice, to also succeed to the Franchisee's rights, title, and interests thereunder.
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- Under the Franchise Agreement, any lease or any modification or renewal of the Lease for the Premises of the Best Brains business is subject to the Franchisor's approval.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the franchise agreement includes several schedules and agreements that add to the standard franchise agreement. These include an Option Agreement, which allows a franchisee to explore acquiring an additional territory for a $2,500 nonrefundable deposit. If the franchisee secures a lease and a new franchise agreement within 90 days, the deposit is credited towards the initial franchise fee.
Schedule 1 pertains to the franchise location, allowing for specific details to be added. Schedule 4 details the Initial Inventory Agreement, outlining the process by which Best Brains will handle the franchisee's initial inventory purchase, confirming that the franchisee will only be charged for shipped items.
Additionally, a Lease Rider is included, which outlines the relationship between the landlord, Best Brains, and the franchisee, ensuring that the premises can only be used for a Best Brains business and giving Best Brains certain rights regarding the lease, including receiving notices of default and the option to cure breaches. The Lease Rider also states that any lease for the Best Brains business is subject to the Franchisor's approval.