What pre-opening obligations must Best Brains complete before initial fees are no longer deferred?

According to Best Brains' 2025 Franchise Disclosure Document, initial fees and payments owed by franchisees in Maryland are deferred until Best Brains completes its pre-opening obligations under the franchise agreement. This deferral is a requirement by the Maryland Securities Commissioner based on Best Brains' financial condition. This addendum modifies Item 5 of the standard disclosure document.

This means that for franchisees in Maryland, the initial franchise fee is not due upfront. Instead, it becomes payable only after Best Brains has fulfilled all of its responsibilities outlined in the franchise agreement related to the pre-opening phase. These obligations typically include site selection assistance, training, providing operations manuals, and other support necessary to help the franchisee establish their Best Brains learning center.

This deferral provides a significant benefit to franchisees in Maryland, as it reduces their initial financial burden and aligns the payment of fees with the franchisor's performance in setting up the franchise. It also offers some protection to the franchisee, ensuring that they only pay the initial fee once Best Brains has delivered on its pre-opening promises. Prospective franchisees should carefully review Item 5 of the FDD and the franchise agreement to fully understand Best Brains' pre-opening obligations and the conditions under which the initial fee becomes due.