How long after termination or expiration does Best Brains have to exercise its option to purchase a Best Brains franchisee's business?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- **F.
Option to Purchase Assets.** Upon the termination or expiration of this Agreement, we have a 90 day option to purchase from you some or all of the equipment, supplies, inventory, advertising materials and any items with our Marks for cash at fair market value.
If you and we do not agree upon the amount of the fair market value, then a business appraiser selected by us shall determine the fair market value. The cost of the business appraiser shall be borne equally by us and you.
We have an unrestricted right to assign this option to a third party.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 32–34)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, Best Brains has the option to purchase a franchisee's assets upon termination or expiration of the franchise agreement. Specifically, Best Brains has 90 days to exercise its option to purchase some or all of the equipment, supplies, inventory, advertising materials, and any items with Best Brains' marks. This purchase would be made for cash at fair market value.
If Best Brains and the franchisee cannot agree on the fair market value of the assets, a business appraiser selected by Best Brains will determine the value. The cost of this appraiser is to be shared equally between Best Brains and the franchisee. Best Brains also retains the right to assign this purchase option to a third party.
This clause ensures that Best Brains can maintain control over its branding and resources even after a franchise agreement ends. For a franchisee, it means they may be required to sell certain assets back to Best Brains, potentially impacting their ability to start a similar business independently, even if they are not directly competing. It is important for prospective franchisees to understand how the fair market value will be assessed and to consider this potential obligation when planning their exit strategy.