What releases must the franchisee and their owners execute before a Best Brains franchise transfer?

According to the 2025 Best Brains Franchise Disclosure Document, if a franchisee is transferring their franchise, both the franchisee and each of their owners (if the franchisee is an entity) must execute releases of all claims against Best Brains, its affiliates, and their respective officers, directors, managers, shareholders, members, employees, and agents. This requirement ensures that Best Brains is protected from any potential future claims arising from the previous franchisee's operation of the business.

This release is a standard practice in franchising, as it provides the franchisor with legal protection when a franchise changes hands. It is important for prospective franchisees to understand the scope of these releases and to seek legal counsel if they have any concerns about the potential implications. The franchisee should carefully review the release documents to fully understand what rights they are waiving.

In addition to the release, the franchisee will also need to pay a transfer fee of $2,500 for the transfer of either a Premium Learning Center or a Teacher Learning Center franchise. This fee likely covers Best Brains' administrative costs associated with processing the transfer and ensuring that the new franchisee meets their standards. The FDD also mentions other conditions for transfer, such as offering Best Brains a right of first refusal and ensuring the transferee meets certain qualifications and training requirements.