If the Best Brains Brand Development Fund is terminated, how are the unspent monies distributed?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon 30 days' prior written notice to you, we shall have the right to suspend contributions to and operation of the Brand Development Fund for one or more periods that we determine 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.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, should the Brand Development Fund be terminated, any unspent monies will be distributed to the Company, its affiliates, and franchisees. The distribution will be proportional to their respective contributions to the Brand Development Fund during the 12-month period preceding the termination.
This means that if the fund is terminated, franchisees can expect to receive a portion of the remaining funds back, but the amount will directly correlate with how much they contributed relative to everyone else in the system during the previous year. This proportional distribution ensures that those who contributed more to the fund receive a larger share of the remaining assets.
Best Brains retains the right to suspend contributions to and operation of the Brand Development Fund or terminate it altogether, providing franchisees with 30 days' prior written notice. They also have the right to reinstate the fund under the same terms with similar notice. This clause provides Best Brains with flexibility in managing the fund based on the needs of the franchise system.