What are a Best Brains franchisee's obligations upon termination or non-renewal?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| Franchisee's obligations on i. termination/non-renewal | Section 7.E | Pay amounts owed; return the Operations Manual and Software Program and return or destroy all other materials; stop using Marks, System and confidential information; de identify yourself from us; cancel assumed names; return to us any signs utilizing the Marks; provide us with the names, addresses, and telephone numbers of all customers; assign to us your telephone and facsimile numbers, and e-mail and internet addresses, websites, domain names, social media sites and search engine identifiers; assign your lease to us, at our option; adhere to non-competition provisions. Pay liquidated damages. Upon our request, transfer some or all of your students to another BEST BRAINS learning center, refund tuition, and take such other actions to ensure the orderly transition of students. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 32–34)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, franchisees have several obligations upon termination or non-renewal of their franchise agreement. These obligations are detailed in Section 7.E of the franchise agreement.
Upon termination or non-renewal, a Best Brains franchisee must first pay all outstanding amounts owed to the company. Additionally, the franchisee is required to return the Operations Manual and Software Program to Best Brains, and either return or destroy all other materials related to the franchise. The franchisee must also cease using any of Best Brains' trademarks, systems, and confidential information, and take steps to de-identify themselves as associated with Best Brains, including canceling any assumed names and returning any signs that utilize Best Brains' marks.
Furthermore, the franchisee must provide Best Brains with the names, addresses, and telephone numbers of all customers. The franchisee is also required to assign their telephone and facsimile numbers, e-mail and internet addresses, websites, domain names, social media sites, and search engine identifiers to Best Brains. At Best Brains' option, the franchisee may also be required to assign their lease to Best Brains. The franchisee must adhere to non-competition provisions, and may be required to pay liquidated damages. Finally, upon request from Best Brains, the franchisee must transfer some or all of their students to another Best Brains learning center, refund tuition, and take other actions to ensure a smooth transition of students.