What information must be disclosed about the purchaser in the offer to sell a Best Brains franchise?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
If you determine at any time to sell your rights under this Agreement, or the assets of the Franchised Business, or your ownership interest, in whole or part, you must obtain a bona fide, executed written offer from a responsible and fully disclosed purchaser and must submit an exact copy of such offer to us.
We or our designee shall, for a period of 30 days from the date of delivery of such offer to us, have the right, exercisable by written notice to you, to purchase the interest for the price and on the terms and conditions contained in the offer, provided that any brokers', agents', or finders' fees shall be deducted from the purchase price and we or our designee may substitute cash for any form of payment proposed in such offer.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, if a franchisee decides to sell their rights under the Franchise Agreement, the assets of the Franchised Business, or their ownership interest, they must first obtain a bona fide, executed written offer from a responsible and fully disclosed purchaser. An exact copy of this offer must then be submitted to Best Brains.
Best Brains retains the right of first refusal, allowing them or their designee to purchase the interest for the price and terms outlined in the offer. This right is exercisable within 30 days of receiving the offer. Any brokers', agents', or finders' fees are deducted from the purchase price, and Best Brains or their designee can substitute cash for any proposed form of payment.
This process ensures that Best Brains maintains control over who enters their franchise system and protects the brand's integrity. By requiring full disclosure of the purchaser and the terms of the offer, Best Brains can make an informed decision about whether to exercise their right of first refusal. This is a fairly standard practice in franchising, allowing franchisors to maintain quality control and protect their brand standards.