factual

What is the Best Brains franchisee's obligation regarding including specific terms and conditions in a lease for the Franchised Business?

Best_Brains Franchise · 2025 FDD

Answer from 2025 FDD Document

to be appropriate or to terminate the Brand Development Fund. - i. We shall distribute all unspent monies of the Brand Development Fund which was terminated to the Company, its affiliates and franchisees in proportion to their respective contributions to the Brand Development Fund during the preceding twelve-month period. - ii. We shall have the right to reinstate the Brand Development Fund upon the same terms and conditions as set forth in this Agreement, upon thirty days' prior written notice to you.

5. FRANCHISEE OBLIGATIONS.

  • A. Initial Training. You must attend and pass the training program before operating Franchised Business. You must pay all transportation and living expenses incurred in attending the initial training program.
  • B. Commence Operation Within 180 Days. You must commence operating the Franchised Business within 180 days after the date of this Agreement. If you have not commenced operating the Franchised Business within 180 days after the date of this Agreement, we may terminate this Agreement.
  • C. Premises. You are responsible for obtaining a location, acceptable to us, for the Franchised Business. Upon our approval of a location, we will complete a Schedule A to the Agreement.
  1. Lease. If you will lease premises, you must first submit the lease to us for written approval at least fifteen days before is the lease is scheduled to be executed. You shall not execute or agree to any modification of a lease without our prior approval. Such approval shall not be unreasonably withheld.

The lease must include language contained in the Lease Rider, attached as Schedule 2. The lease must give the Company, its agents or designees the right to:

  • i. enter the premises to conduct inspections at any time during regular business hours,
  • ii. receive notices of default directly from the lessor, and
  • iii. to assume the lease for all or any part of the term if you default under the lease, are evicted, or if this Agreement expires or is terminated.

You agree that any new, amended, restated, extended or renewed lease for the Franchised Business will include the above terms and conditions.

    1. Subletting. You shall not lease or sublet all or any part of the business premises to others or use any portion of the premises for any purpose other than conducting business pursuant to this Agreement without our prior written consent.

Source: Item 23 — RECEIPTS (FDD pages 42–190)

What This Means (2025 FDD)

According to the 2025 Best Brains Franchise Disclosure Document, a franchisee is responsible for securing a location acceptable to Best Brains for their franchised business. If the franchisee will lease the premises, they must submit the lease to Best Brains for written approval at least fifteen days before the lease is scheduled to be executed. The franchisee cannot execute or agree to any modification of a lease without Best Brains' prior approval. Such approval will not be unreasonably withheld.

The lease must include language contained in the Lease Rider, attached as Schedule 2 in the Franchise Agreement. The lease must grant Best Brains, its agents, or designees the right to enter the premises for inspections at any time during regular business hours, receive notices of default directly from the lessor, and assume the lease for all or any part of the term if the franchisee defaults under the lease, is evicted, or if the Franchise Agreement expires.

Prior to renewal of a lease, Best Brains must review and approve the lease renewal. Approval of the lease renewal is conditioned upon the inclusion of terms in the lease acceptable to Best Brains, including provisions required to be included in a lease for a location as specified in the Franchise Agreement. As a condition to approving the lease renewal, the franchisee may be required to remodel, modernize, and redecorate the premises of the Franchised Business to reflect Best Brains' current standards and image.

The franchisee is responsible for the fee for Best Brains' services in connection with the lease renewal and the process for evaluating the necessary upgrades up to $3,500. The fee is based on the costs incurred by Best Brains and is due and payable at the time of the execution of the lease renewal.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.