What options does Best Brains have to purchase a franchisee's business upon termination or expiration?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
tant provisions of the franchise and related agreements. You should read these provisions in the agreements attached to this disclosure document.**
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| performance may be required; and right of first refusal declined by us. (also see r below). | ||
| n. Franchisor’s right of first refusal to acquire franchisee’s business | Section 9.D | We can match any offer for your business, except broker’s fees are excluded. Cash may be substituted for any form of payment proposed. |
| 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. |
| p. |
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 a right of first refusal and an option to purchase a franchisee's business. Best Brains can match any offer a franchisee receives for their business, excluding broker's fees, and may substitute cash for any proposed form of payment.
Additionally, Best Brains has the option to purchase some or all of the franchisee's equipment, supplies, inventory, advertising materials, and any items with Best Brains' logo. This purchase would be made for cash at fair market value. Best Brains can exercise this option up to 90 days after the franchise agreement's termination or expiration.
If the franchisee and Best Brains cannot agree on the fair market value, Best Brains will appoint an appraiser to determine the value. The FDD also states that upon termination or expiration of the franchise agreement, Best Brains has 90 days to exercise its option to purchase assets from the franchisee.