If Best Brains provides recommended minimum prices, am I obligated to follow them?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
(5) Provide you with recommended minimum prices for your area. (Franchise Agreement Section 4.D.)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 23–28)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, Best Brains will provide franchisees with recommended minimum prices for their area. However, the FDD does not state whether franchisees are obligated to adhere to these recommended prices.
Without further clarification in the FDD, it is unclear whether these price recommendations are merely suggestions or mandatory guidelines. Franchise agreements sometimes include clauses that allow franchisors to set maximum or minimum prices to maintain brand consistency and market competitiveness.
A prospective Best Brains franchisee should seek clarification from the franchisor regarding the nature of these recommended minimum prices. Specifically, they should ask whether these prices are mandatory, and what the consequences are for deviating from them. Understanding the pricing flexibility is crucial for developing a sustainable business strategy.