Can a Best Brains franchisee increase the rent when subletting or assigning the lease to the franchisor?

According to Best Brains' 2025 Franchise Disclosure Document, a franchisee has the right to sublet, assign, or transfer their interest in the lease to Best Brains without the landlord's approval. This can occur without any increase in rent, except as already provided in the lease. Additionally, such actions can be done without material changes to other lease terms or requiring any additional guaranty of obligations under the assigned lease. This clause protects the franchisee from unexpected rent hikes or altered lease conditions when transferring the lease to Best Brains.

This provision is beneficial for a Best Brains franchisee because it provides flexibility in managing the lease agreement, especially during a transfer or assignment to the franchisor. The franchisee does not need to seek the landlord's approval, which streamlines the process and reduces potential delays or complications. The assurance that the rent will not increase (unless already specified in the lease) offers financial predictability and protects the franchisee from opportunistic rent increases by the landlord during the transfer.

However, it is important to note that this right is subject to Paragraph 1 of the Lease Rider, which stipulates that the premises can only be used for operating a Best Brains business. This means that while the franchisee can transfer the lease to Best Brains without a rent increase, the use of the property remains restricted to the Best Brains business. A prospective franchisee should carefully review the entire Lease Rider and consult with legal counsel to fully understand their rights and obligations under the lease agreement.