What is required of Best Brains (or its affiliate) to assume the franchisee's obligations under the lease?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee and Landlord acknowledge and agree that the Franchisor (or its affiliate or a company with which the Franchisee or the Franchisor may merge or consolidate) shall have no liability or obligation whatsoever under the Lease unless and until the Franchisor (or its affiliate or a company with which the Franchisee or the Franchisor may merge or consolidate) assumes the Lease in writing pursuant to Paragraphs 3, 4 or 5 above.
The Franchisor (or its affiliate or a company with which the Franchisee or the Franchisor may merge or consolidate) shall assume all of the Franchisee's obligations under the Lease from and after the date of assignment, but shall have no obligation to pay any delinquent rent or to cure any other default under the Lease that occurred or existed prior to the date of the assignment.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, for Best Brains (or its affiliate or a company with which the franchisee or Best Brains may merge or consolidate) to assume a franchisee's obligations under a lease, it must notify both the franchisee and the landlord in writing that it is assuming these obligations. This notification is essential for the assumption to take effect.
Best Brains' assumption of the lease means it takes on all the franchisee's responsibilities from the date of assignment forward. However, Best Brains is not obligated to cover any unpaid rent or resolve any defaults that occurred before the assignment date. This protects Best Brains from inheriting past financial issues related to the lease.
After assuming the lease, Best Brains has the right to further assign or sublet the lease to another party to operate the Best Brains business at the premises. This subsequent assignment or subletting requires the landlord's prior written consent, which cannot be unreasonably withheld or delayed. However, if the lease is assigned or sublet to another Best Brains franchisee, no such consent from the landlord is required. This provision allows Best Brains flexibility in managing the location and ensuring continued operation of a Best Brains center.
Furthermore, the landlord agrees to provide Best Brains with all information related to sales and operations of the Best Brains business. The franchisee consents to the landlord sharing this information with Best Brains. This arrangement ensures that Best Brains has access to necessary data to oversee the business and maintain its standards.