If a Best Brains franchisee is transferring the franchise, is it a requirement that all monetary obligations owed to Best Brains and its affiliates are fully paid?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
itation.** In addition, in the event of the termination or expiration of the Agreement, including a transfer of the Franchised Business or your interest in it, you will not for a two (2) year period, within the same geographic area solicit business for a learning center from any customer of the Franchised Business. If the duration, scope and/or geographic area set forth in this paragraph and Agreement are held to be unreasonable and therefore unenforceable by any court of competent jurisdiction, then the duration, scope and/or geographic area of the foregoing restrictions and agreements shall remain in full force and effect as to such maximum duration, scope and/or geographic area as the court shall allow.
9. TRANFERABILITY OF INTEREST.
- A. Transfer by the Company. We shall have the right, in our sole discretion, to transfer or assign this Agreement and all or any part of its rights or obligations to any person or legal entity who agrees to abide by the obligations in this Agreement. You shall execute such documents consenting to such a transfer as we request.
- B. Transfer by Franchisee. You understand and acknowledge that the rights and duties set forth in this Agreement are personal to you, and that we have granted this franchise in reliance on your business skill, financial capacity, and personal character.
Accordingly, you may not sell, assign, transfer, convey, pledge, encumber, merge, or give (collectively "transfer") away any direct or indirect interest in this Agreement, in Franchisee, or in all or substantially all of the assets of the Franchised Business without our prior written consent. Any purported assignment or transfer not having our written consent shall be null and void.
We shall not unreasonably withhold its written approval of an assignment or transfer, provided:
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- You have properly offered us the opportunity to exercise the right of first refusal as provided in the right of first refusal section of this Agreement, and we declined to exercise it;
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- The assignee or transferee has sufficient business experience, aptitude, financial resources, meets our then applicable standards for franchisees, is of good moral character, will comply with our standard training requirements, has received the required disclosure documents in accordance with law, and executes the then curren
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, a franchisee must ensure all monetary obligations to Best Brains and its affiliates are fully paid before transferring their franchise. This is a condition for Best Brains to approve the transfer.
This requirement ensures that Best Brains receives all outstanding payments before a transfer is completed. It protects Best Brains' financial interests and ensures that the new franchisee is not burdened with the previous franchisee's debts.
In addition to settling all outstanding monetary obligations, the franchisee must also offer Best Brains the right of first refusal, ensure the transferee meets Best Brains' standards, and pay a transfer fee of $2,500 for either a Premium Learning Center or a Teacher Learning Center franchise. The franchisee must also execute releases of all claims against Best Brains and its affiliates.
These conditions are typical in franchising to maintain brand standards, protect the franchisor's financial interests, and ensure a smooth transition between franchisees. A prospective Best Brains franchisee should be aware of these requirements and plan accordingly if they intend to transfer their franchise in the future.