If a Best Brains franchisee assigns the lease to the franchisor, will the rent increase?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything to the contrary contained in the Lease, and subject to Paragraph 1 of this Rider, the Franchisee shall have the absolute right to sublet, assign or otherwise transfer its interest in the Lease to the Franchisor or its affiliate, or to a company with which the Franchisee or the Franchisor may merge or consolidate, without Landlord's approval, written or otherwise, without any increase in rent (except as provided in the Lease), without a material change in any other terms of the Lease, and without execution of any additional guaranty of the obligations under the assigned Lease.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, a franchisee can assign their lease to Best Brains without an increase in rent, provided that the terms of the lease do not specify otherwise. Specifically, the franchisee has the right to transfer its interest in the lease to Best Brains without the landlord's approval and without any increase in rent, unless the lease already stipulates rent increases. This condition is part of a rider that is required to be included in the lease agreement between the franchisee and the landlord.
This provision protects the franchisee by ensuring that Best Brains can take over the lease under the original terms if needed, such as in the event of a transfer or termination. It also benefits Best Brains by allowing them to maintain control over the location of the business. The rider stipulates that its terms supersede any conflicting terms in the original lease, reinforcing the franchisee's right to assign the lease to Best Brains without triggering a rent increase, unless such increases were already part of the original lease agreement.
It is important for a prospective Best Brains franchisee to carefully review the lease agreement and the associated rider to understand the specific terms related to assignment and rent increases. Franchisees should also consult with legal counsel to ensure they fully understand their rights and obligations under the lease and franchise agreement.