What must a Best Brains franchisee do if they determine to sell their rights under the agreement?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Right of First Refusal. If you determine at any time to sell your rights under this Agreement, or the assets of the Franchised Business, or your ownership interest, in whole or part, you must obtain a bona fide, executed written offer from a responsible and fully disclosed purchaser and must submit an exact copy of such offer to us.
We or our designee shall, for a period of 30 days from the date of delivery of such offer to us, have the right, exercisable by written notice to you, to purchase the interest for the price and on the terms and conditions contained in the offer, provided that any brokers', agents', or finders' fees shall be deducted from the purchase price and we or our designee may substitute cash for any form of payment proposed in such offer.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, if a franchisee decides to sell their rights under the Franchise Agreement, or the assets of the franchised business, or their ownership interest, they must first obtain a bona fide, executed written offer from a responsible and fully disclosed purchaser. The franchisee is then required to submit an exact copy of this offer to Best Brains.
Best Brains retains the right of first refusal, giving them the option to purchase the franchisee's interest on the same terms and conditions as the offer received. Best Brains has 30 days from the date they receive the offer to exercise this right by providing written notice. If Best Brains exercises its right of first refusal, any brokers', agents', or finders' fees will be deducted from the purchase price, and Best Brains can substitute cash for any form of payment proposed in the offer.
This right of first refusal is a standard practice in franchising, allowing Best Brains to maintain control over who enters the system and ensuring that any new franchisee meets their standards. It also protects Best Brains' interests by allowing them to acquire existing locations or territories if they see strategic value in doing so. For a franchisee, this means they cannot simply sell to anyone; they must give Best Brains the first opportunity to buy the business.