What lease-related condition must be met for a Best Brains franchise transfer?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Right of First Refusal. 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 Best Brains' 2025 Franchise Disclosure Document, if a franchisee wants to transfer their Best Brains franchise, they must first obtain a bona fide, executed written offer from a responsible and fully disclosed purchaser. The franchisee must then submit an exact copy of this offer to Best Brains.
Best Brains retains the right of first refusal, giving them or their designee the option to purchase the franchise interest at the price and terms outlined in the offer. This right is exercisable within 30 days of receiving the offer from the franchisee. If Best Brains exercises this right, any broker's, agent's, or finder's fees will be deducted from the purchase price, and Best Brains 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 interests. It also allows Best Brains to potentially expand their corporate-owned locations if they deem it beneficial. Franchisees should be aware of this clause as it can impact their ability to sell their franchise to a third party if Best Brains decides to exercise their right of first refusal.