What rights does Best Brains grant to the franchisee during the 90-day Deposit Period?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor hereby grants to Franchisee the right for 90 days ("Deposit Period") to enter into one a lease for a Center location and to obtain from Franchisor a Franchise Agreement for such possible new franchise territory.
Franchisee shall pay to Franchisor, at the time of execution of this Agreement, a nonrefundable deposit of $2,500 for the rights described in Section 1 above. If Franchisee secures a lease for a Center location and new Franchise Agreement for that location, then the $2,500 shall be considered a deposit against the initial franchise fee on the new territory. If a Center location and new Franchise Agreement are not obtained in the 90 day period, then the $2,500 payment to Franchisor is nonrefundable as consideration for its rights given up under this Option Agreement.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, a franchisee has the right for 90 days, referred to as the "Deposit Period", to enter into a lease for a center location and to obtain a Franchise Agreement for a possible new franchise territory. This right is granted by Best Brains to the franchisee under the terms of the Option Agreement.
To secure these rights, the franchisee must pay Best Brains a nonrefundable deposit of $2,500 upon execution of the Option Agreement. If the franchisee successfully secures a lease and a new Franchise Agreement within the 90-day period, this $2,500 deposit will be credited towards the initial franchise fee for the new territory.
However, if the franchisee does not obtain a lease and a new Franchise Agreement within the 90-day Deposit Period, the $2,500 deposit is nonrefundable. This serves as consideration for the rights that Best Brains gives up under the Option Agreement. This agreement allows the franchisee to explore the possibility of expanding their franchise territory without immediately committing to a full franchise agreement, while Best Brains receives compensation for holding the territory open for the franchisee.