What monetary obligations must be paid before a Best Brains franchisee can transfer the franchise?
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 stan
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 meet certain monetary obligations before transferring their franchise. Specifically, all outstanding monetary obligations owed to Best Brains and its affiliates must be fully paid. Additionally, the franchisee is required to pay a transfer fee of $2,500. This fee applies whether the franchise being transferred is a Premium Learning Center or a Teacher Learning Center.
These requirements ensure that Best Brains receives all outstanding payments before a transfer is completed. This protects the financial interests of the company and its affiliates. The $2,500 transfer fee likely covers the administrative costs associated with processing the transfer and updating the franchise agreement.
In the franchise industry, it is common for franchisors to require payment of outstanding debts and a transfer fee before approving a franchise transfer. This practice helps maintain the financial health of the franchise system and ensures a smooth transition to the new franchisee. A prospective Best Brains franchisee should factor these costs into their financial planning if they anticipate selling their franchise in the future.
It is important to note that these are not the only conditions for transfer. Best Brains also requires that the franchisee has properly offered them the opportunity to exercise the right of first refusal and that the assets of the Franchised Business are refurbished, remodeled or replaced in order to be in compliance with the then current standards and specification utilized in the granting of franchises.