Is the Best Brains Option Agreement fee refundable if a Franchise Agreement is not signed?

According to Best Brains' 2025 Franchise Disclosure Document, the $2,500 deposit paid for the Option Agreement is nonrefundable. This agreement grants the franchisee the right, for 90 days, to secure a lease for a center location and to obtain a Franchise Agreement from Best Brains for a potential new franchise territory.

This means that if a prospective Best Brains franchisee pays the $2,500 deposit to secure the option for a new territory but does not ultimately sign a Franchise Agreement, they will not receive a refund of the deposit. The fee is paid for the opportunity to secure the territory and enter into a lease within the 90-day period, regardless of whether the franchisee successfully establishes a new Best Brains center.

Franchisees should carefully consider their interest in a new territory and their ability to secure a lease and finalize a Franchise Agreement within the 90-day period before entering into the Option Agreement and paying the nonrefundable deposit to Best Brains. This is a common practice in franchising, where option fees are often nonrefundable to compensate the franchisor for holding the territory and foregoing other potential franchisees during the option period.