Does Best Brains have an option to purchase a franchisee's business?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| o. Franchisor’s option to purchase franchisee’s business | Section 7.F | Option to purchase some or all equipment, supplies, inventory, advertising materials and any items with our logo, for cash at fair market value, exercisable up to 90 days after termination or expiration. If no agreement on fair market value, an appraiser appointed by us will decide. |
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 does have an option to purchase a franchisee's business under certain conditions. Specifically, Best Brains has the option to purchase some or all of the franchisee's equipment, supplies, inventory, advertising materials, and any items with the Best Brains logo. This purchase would be made with cash at fair market value.
This option is exercisable up to 90 days after the termination or expiration of the franchise agreement. If the franchisee and Best Brains cannot agree on the fair market value of the items, an appraiser appointed by Best Brains will determine the value.
This clause in the franchise agreement means that a franchisee may be required to sell certain assets back to Best Brains upon the end of the franchise term. It is important for prospective franchisees to understand how the fair market value will be assessed and what recourse they have if they disagree with the valuation determined by Best Brains' appraiser. This could impact the franchisee's ability to recoup their initial investment in these assets.