What is the process for Best Brains to exercise its right of first refusal when a franchisee wants to sell?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
If we or our designee do not exercise this right of first refusal, you may, subject to the same conditions for transfers contained in this Agreement, complete the sale to such purchaser on the terms of the bona fide offer.
If the sale to such purchaser is not completed within 120 days after delivery of such offer to the us, or if there is a material change in the terms of the sale, we or our designee shall again have the right of first refusal herein provided.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, if a franchisee receives a legitimate offer to purchase their franchise, Best Brains has the right of first refusal. If the franchisee intends to sell their franchise, they must first present the offer to Best Brains.
Best Brains then has the option to either accept the offer and purchase the franchise on the same terms, or decline to exercise their right. If Best Brains or its designee does not exercise this right of first refusal, the franchisee can proceed with the sale to the original purchaser, provided it adheres to the same transfer conditions outlined in the Franchise Agreement.
However, the sale must be completed within 120 days of Best Brains receiving the offer. If the sale is not completed within this timeframe, or if there are any material changes to the terms of the sale, Best Brains reserves the right to another opportunity to exercise its right of first refusal. This ensures that Best Brains maintains control over who enters their franchise system and under what conditions a franchise changes ownership.