What happens if a Best Brains Franchise Agreement expires or is terminated?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
You must lease the premises for your location in the form and manner required by us and deliver a copy of the signed lease to us immediately after its signing. You must not sign any lease which has not been approved in writing by us. If your business premises is to be leased, you must submit the lease to us for written approval at least fifteen days before it is scheduled to be executed. If you lease your business premises, the lease must include language contained in the Lease Rider which is attached to your Franchise Agreement as Schedule 2. The lease shall give us, our agents or designees the right to enter the premises to conduct inspections at any time during regular business hours, the right to receive notices of default directly from the lessor and the right, but not the duty, to assume the lease for all or any part of the term, if you default under the lease, are evicted or if your Franchise Agreement expires or is terminated. You must not lease or sublet all or any part of your business premises to others or use any portion of the premises for any purpose other than conducting business pursuant to your Franchise Agreement without our prior written consent.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 23–28)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, if a Best Brains Franchise Agreement expires or is terminated, Best Brains, its agents, or designees have specific rights regarding the leased premises of the business. Specifically, Best Brains has the right to enter the premises to conduct inspections at any time during regular business hours. They also have the right to receive notices of default directly from the lessor.
Furthermore, Best Brains has the right, but not the duty, to 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 or is terminated. This provision is typically included in a Lease Rider attached to the Franchise Agreement and is a condition that Best Brains requires in the lease agreement for the business premises.
This means that upon expiration or termination, Best Brains has the option to take over the lease of the location, which could be beneficial for them to continue operating a Best Brains center at that location or to transfer the location to another franchisee. For a prospective franchisee, this highlights the importance of understanding the terms of the lease agreement and the potential implications if the franchise agreement is terminated or expires. It is also important to note that the franchisee cannot lease or sublet any part of the business premises without prior written consent from Best Brains.