What must a Best Brains franchisee deliver to the company upon termination or expiration of the agreement?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
Pay all amounts owing to us or our affiliates,
Cancel your assumed name registration, and not represent that you formerly did business under the Marks.
Transfer some, or all, of the students to another BEST BRAINS learning center, refund some or all of the tuition paid by the students for subjects which have not yet been completed, and take such other actions as we may direct to ensure the orderly transition of such students.
Deliver to us the names, addresses and telephone numbers of your customers during the preceding three years.
Promptly notify the telephone company and all listing agencies of the termination or expiration of your right to use any telephone number and any regular, classified or other listings associated with the Marks and to authorize transfer of same to or at the direction of the Company.
You agree that we have the sole rights to and interest in all e-mail and internet addresses, websites, domain names, social media sites and search engine identifiers, and all telephone and facsimile numbers and directory listings associated with the Marks, and you authorize us, and appoint us as your attorney-in-fact, to direct such telephone companies, internet service providers, domain name registrars, social media hosts and all listing agencies to transfer same to us or our designee.
If we so request, assign to us or our designee your interest in any lease then in effect for the Franchised Business premises.
We have 30 days after termination or expiration of this Agreement to exercise this option.
Adhere to the provisions of the post-term covenants not to compete and not to solicit;
Abide by any other covenant in this Agreement that requires performance by you after you are no longer a franchisee; and
Within 30 days of termination or expiration, furnish to us satisfactory evidence of your compliance with the foregoing obligations.
- **F.
Option to Purchase Assets.** Upon the termination or expiration of this Agreement, we have a 90 day option to purchase from you some or all of the equipment, supplies, inventory, advertising materials and any items with our Marks for cash at fair market value.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, upon termination or expiration of the franchise agreement, a franchisee must fulfill several obligations to Best Brains. These include paying all outstanding amounts owed to Best Brains or its affiliates. The franchisee must also cancel their assumed name registration and cease representing that they were formerly associated with the Best Brains brand.
Additionally, the franchisee is required to transfer students to another Best Brains learning center if directed by the company, potentially refunding tuition for incomplete subjects to ensure a smooth transition for the students. The franchisee must also provide Best Brains with the names, addresses, and telephone numbers of customers from the preceding three years. Furthermore, the franchisee must promptly notify the telephone company and listing agencies about the termination of their right to use any telephone number or listings associated with the Best Brains marks, authorizing the transfer of these to Best Brains.
Best Brains retains sole rights to all email and internet addresses, websites, domain names, social media sites, search engine identifiers, and all telephone and facsimile numbers and directory listings associated with the Best Brains marks. The franchisee authorizes Best Brains to direct the transfer of these assets. If requested by Best Brains, the franchisee must assign their interest in any lease for the franchised business premises, with Best Brains having 30 days after termination or expiration to exercise this option. The franchisee must also adhere to post-term covenants not to compete and not to solicit, and abide by any other covenant in the agreement that requires performance after the franchise ends. Within 30 days of termination or expiration, the franchisee must provide satisfactory evidence of compliance with these obligations.
Best Brains also has the option to purchase some or all of the franchisee's equipment, supplies, inventory, advertising materials, and any items with Best Brains' marks for cash at fair market value within 90 days of termination or expiration. These comprehensive requirements ensure an orderly transition and protect Best Brains' interests and brand reputation after a franchise agreement concludes.