Who is the Best Brains Option Agreement binding upon?

According to Best Brains' 2025 Franchise Disclosure Document, the Option Agreement is binding upon the parties involved and their respective successors and permitted assigns. This means that not only are Best Brains and the franchisee bound by the terms of the agreement, but also any entity that legally takes over their rights or obligations, provided the assignment is permitted under the agreement.

This clause ensures that the commitments made in the Option Agreement remain enforceable even if the original parties undergo changes in ownership or structure. For example, if Best Brains sells its franchise system to another company, that new company would be obligated to honor the terms of the Option Agreement with the franchisee, assuming the agreement allows for such a transfer. Similarly, if a franchisee sells their business (with Best Brains' permission, if required), the new franchisee would step into the shoes of the original franchisee regarding the Option Agreement.

However, it is important to note that the Option Agreement may contain restrictions on who can be a 'permitted assign.' For instance, the agreement might require Best Brains' approval before a franchisee can assign their rights to another party. Prospective franchisees should carefully review the entire Option Agreement to understand the full scope of this binding effect and any limitations on assignment or transfer.